An Study Of Relationship Between The Reform Of Enterprise Income Tax And The Earnings Management

Tax is an important factor of affecting the value of the company．Reducing the tax burdenhas been an important motivation for enterprises to manage earnings．A new enterprise income taxlaw introduced in2007and began in2008will change the tax burden on domestic companies，what impact does corporate income tax reform on the extent of earnings management anddirection?what effect?With the implementation of China’s new accounting standards， the supervision ofaccounting standards more and more strict，real earnings management tends to be more covert，based on the2006-2009years of China’s Shanghai and Shenzhen listing Corporation as thesample，starting from the earnings management in two ways，namely the accrual earningsmanagement and real earnings management，research method comprehensive use of empiricalresearch and normative combination，based on the relevant research results at home and abroad tostudy on the change of income tax reform after the earnings management degree and direction．The results show that：after the reform of the corporate income tax，company the accruedearnings management space increases，the degree of significant increases to the next lowerprofits．At the same time，the company’s real earnings management increased to some extent，butthe change of the overall is not obvious．In the way of corporate earnings management，the shift ofthe accrued earnings management to more subtle real earnings management does not exist，thesame as the two earnings management and complementary relationship．And expected assumptionis opposite．It may have occurred because accounting conservatism resulted in the increase ofaccrual earnings management. But for the real earnings management is because managers areconsidering the implementation costs are too high and the long-term interests of enterprisesdamaged reasons，in the modest tax changes before and after the implementation．In addition，amajor capital market motivation that deficits motivation to avoid loss motivation，the surplus ofsmooth motives and financing motives exist in the company and these motives had an impact onthe company’s accrual and real earnings management behavior in reform of enrerprise income tax．...