Empirical Study Of China’s Listed Companies’ Real Earnings Management

Right now the academic members who have long researched earnings management have focused at the research of accrued earnings, however, earnings management not only be completed solely by adjusting accrued earnings, but also by changing real activities.Companies earnings is the matter which has been received interested from companies’owners, investors, loaners etc. Many famous events, like Yinguangxia, Anran and many other financing scandals let us realize that earnings management has been already spread in the companies. Because the behavior of earnings management make the quality of accounting earnings could not justly reflect all the real situation of the companies, which will make the investors, loaners generate wrong insights, which will negatively influence the development of social economy. Recently, growing by the plentiful development of accounting principle and related law and rules, and also with the announcement of SOX, the space for manipulating accrued earnings has been more and more tiny, and the risk has been more and more huge, so more and more listed companies have been used real earnings management like manipulating sales, expenses, and production.My paper is just started with the earnings management which has been received less research in the academic. I have looked back of the related theory of real earnings management, and research our countries’ listed companies between2007-2011, by using the model invented by Roychowdhury(2006) I have tested and verified the existing cf real earnings management which use manipulating sales and other real activities to control earnings, the I have discussed the level of manipulating, the researched the seasonal change of sales manipulating all over the year, and I have established the relationship between typical monopolized industry and not industries. At last combining the findings, and comprehensive considering the situation of real earnings management, I have made many suggestions, and hope these suggestions could add value to the economy market.