Study On The Influence Of Corporate Governance In GEM Listed Companies On Earnings Management

In recent years, the problem of earnings management has always existed in capitalmarket in our country, such as Wan Fusheng branch, China tai yue and zhang boringtechnology, these earnings management events occurred one after another. Earningsmanagement behavior make the accounting information can not reflect the true operational ofthe enterprise, result in regulators and investors can not make accurate decisions, seriouslyaffected the efficient allocation of social resources. Under the modern corporate system, thedefect of corporate governance structure is the most direct reason leading to earningsmanagement. Therefore, from the perspective of empirical, this article research for companygovernance structure of the GEM listed influence on earnings management, in order to putforward relevant policy suggestions to perfect company governance structure of the GEMlisted and inhibit earnings management behavior.The paper uses the basic Jones model, modified Jones model and Lu Jianqiao model totest earnings management, trying to find out suitable for GEM listed companies’ earningsmanagement measure model. After inspection, found that more than three aggregate accrualsprofits are measured in model fit is not high. I replace the main business cost variables offixed assets variables in the modified Jones model, after testing the effect has been greatlyimproved. From equity structure features, the board of directors, supervisory boardcharacteristics, management features four aspects to select the related indicators ofgovernance structure. In addition, choose two control variables that have an impact on thedependent variable-the size of the company and asset-liability ratio. At the same time,selected56GEM listed companies who have complete data as research samples, throughdescriptive statistics analysis, correlation analysis and multiple regression analysis to furtherresearch the GEM listed companies the influence of governance structure on earningsmanagement. Studies show that in terms of equity structure, the largest shareholder andshareholding, ownership checks and balances relationship between institutional investors andearnings management is not significant, only legal share stake and earnings management arerelated; In terms of Board characteristics, size, proportion of independent directors of the Board, President and General Manager two levels and earnings management is not asignificant correlation, only the number of meetings of the Board and earnings managementare related; In terms of the Supervisory Board, the Board of Supervisors size and earningsmanagement is irrelevant; In terms of management features, the proportion of executiveownership and earnings management is not relevant. Therefore, the key to solve the problemof China’s gem listed company earnings management is to improve company internalgovernance mechanism, prevent the earnings management problems fundamentally, enablesour country capital market healthy and stable development.