Identification And Analysis On Earnings Management Factors Of Real Estate Listed Companies

Earnings management is one of the common ways to vanish financial statements of listed companies, it is an application of the opportunism, and its harm and influence is huge. The abuse of earnings management in physical not only affect the quality of the financial statements but also disrupt the market order, and then affect investors to judge the value of the stock.The relationship between the development of the real estate industry and national economy or people’s livelihood is very important. First of all, in the eighteenth big meeting for our party’s guidelines and policies of real estate industry has changed, its mainly manifested in the following two points:on the one hand, the market supply to achieve final consumption as the main point, towards sustainability; on the other hand, the market presents the increment and stock trading. Second, the sales, payment and accounting system has the distinct characteristics of the industry, the deposit received in accounted take a high proportion of its business, such characteristics to promote the sales of real estate industry and provided a lot of earnings management space. Third, in recent years, the implementation of new accounting standards in terms of preventing real estate listed companies earnings management has great improvement, but as a result of accounting standards is a kind of criterion, it still cannot eliminate the abuse of earnings management fundamentally. In this paper, the research shows that:the motive of earnings management of the real estate industry is obviously, and it have generous profits, and it often use the means of earnings management to achieve the goal of capital, debt, tax savings, etc. According to many years of research data show that as a result of long term construction of fixed assets and special sales system, the real estate enterprises usually make use of deposit received and financial expenses to reach the target of earnings management. Therefore, in this article, through the recognition of real estate listed companies earnings management factors, and to control the effective factors to restrain the real estate listed companies’ earnings management behavior, and in this way to ensure the healthy development of the real estate market and protect the interests of the investors should share.This article mainly through five parts to demonstrate the identification and analysis of main factors affecting the real estate listed companies earnings management:The first part:introduction. This part mainly includes the paper selected topic background, the significance of the real estate listed companies earnings management factors. And introduce the general situation of the reference literature in our country and others. At the last paragraph, the paper introduces the basic research framework, the innovations and shortcomings.The second part:This part mainly makes a statement of the basic theory of earnings management, the influential factors of earnings management and the measurement of earnings management. It introduces the characteristics of the cost allocation and the several ways of earnings management the real estate industry used.The third part:the recognition and analysis of the influential factors of earnings management of the real estate industry. Combined with the current accounting standards on the real estate industry under the requirements of economical as well as its unique accounting system proposed to identify the real estate listed companies earnings management factors, and it put forward eight influential factors of earnings management of the real estate industry. Finally it extracts three main handling variables, and put forward relevant assumptions.The fourth part:the empirical test and analysis. It introduces the sample selection and the design of the model and variable. And make the empirical analysis and inspection. At last, through the empirical test results verify the hypothesis.The fifth part:conclusions and recommendations. Base on the conclusion of the former part, and put forward reasonable Suggestions. In this article, base on the empirical study we know the listed real the main conclusions are as follows:The real estate listed company in our country mainly use deposit received to reach the goal of earnings management.The change of asset impairment loss and the degree of earnings management is significantly positive correlation. The asset impairment loss is accounting estimate and it have a certain degree of subjectivity, also the real estate listed companies has a big proportion of the fixed assets and inventory industry, so it usually make use of the asset impairment loss to reach the goal of earnings management.The change of financial expenses and the degree of earnings management is positive correlation, the existing rules to expand the scope of the capitalization of the borrowing costs, including the general borrowing. As a result of the long construction period, the capitalization of borrowing costs has become a means of earnings management of the real estate listed companies.Innovation of this paper lies in:first, the present research on the earnings management of enterprise are based on all sectors of all samples, and this article will extract data from real estate listed company financial statements, the effect factors of the earnings management of the real estate listed companies for empirical research and analysis; Secondly, based on the settlement characteristics of real estate enterprises by using the modified Jones model, the paper adds the deposit received to the model; Finally, the paper puts forward some suggestion to constrain the earning management of real estate listed company.The deficiency of the text is due to the limitation of data collection, it only study the date in2010-2012.I hope the future research would supplement data for this article conducted to abundant research results.