An Empirical Study On Cash Flow Manipulation In China’s Listed Firms

In recent decades, more and more people begin to realize the limitations of authenticity of the earning management phenomenon, meanwhile, because of the cash accounting cash flow information basis and reality have corresponding properties of cash and cash equivalents, and which is valued by people. Furthermore, the cash flow information in financial reports is gradually cared about by people, but the authenticity of the cash flow information has different views in theory and practice circles.First of all, on the basis of detailed analysis about the background of cash flow manipulation, we did the summary analysis about the real cause of bad bank claims, and the bad claims were summarized as two aspects of internal cause and external cause. Focusing on the internal cause and external cause, only banks, businesses and government unite together and take impelling policies and measures, and the purpose of protection of the bank creditor’s rights would be achieved finally.Secondly, based on the related domestic and foreign literatures reading and analysis of the cash flow manipulation and bank creditor’s rights protection, we summarized the theoretical basis of the cash flow manipulation, and proposed the related mathematical models of cash flow manipulation, namely distribution inspection model, Probit regression analysis model and the robustness of model.On the basis of models proposed, we used the financial condition data of the GTA gathering from2580Chinese listed companies in nearly five years, and extracted some of the most effective data and analyzed the cash flow manipulation scientifically. First, we used the distribution inspection to analyze the data and found that some companies did the cash flow manipulation for the sake of more profits and avoiding losses. At the same time, according to the cash flow of the t statistic of each interval period, found that some interval variables have no substantial changes. In order to further verify the hypothesis, the Probit multiple regression analysis and robustness analysis were carried out and we obtained that the results of the part of the listed companies in our country existing cash flow manipulation was robust and reliable. Finally, on the basis of the empirical analysis of Chinese listed companies cash flow manipulation, we put forward some advices among the view of the banks themselves, companies and related legal system in the view of the bank creditor’s rights protection to achieve the goals of protecting the bank creditor’s rights, controlling the cash flow manipulation, promoting enterprise development and standardizing the market.