The Influence Research Of Corporate Governance Structure Of Listed Company On Real Earnings Management Activities

Earnings management has become the focus of public attention andacademic research duing its extensive and far-reaching impact on the presence ofstakeholders, Fundamentally speaking, the object of earnings management isaccounting information, but there is a close relationship between accountinginformation and governance structure. Governance structure is the organizationalstructure of a relationship with a certain balance by the shareholders, the Boardof Supervisors, consisting of three senior managers, whether it affects the soundquality of accounting information of listed companies, and therefore also restrictsthe behavior of listed company earnings management. Studying the effects of thegovernance structure on earnings management, there is a certain significance toregulate the behavior of earnings management and the securities market order,.Earnings management is generally divided into two types: accrual earningsmanagement and real earnings management activities.Most research on thegovernance structure and earnings management are focuse on the manipulation ofaccruals from the perspective, but in reality the earnings management of listedcompanies not just rely on manipulation of accruals, more and more companieschoose real earnings management activities to modify the information ofFinancial Statements, while real earnings management activities generally havestronger means to hide，which would brought much work to the regulators andauditors. Therefore, this paper selected from the perspective of real earningsmanagement activities to research the influence of corporate governancestructure of listed company on real earnings management acrivities, hopingenrich the research of earnings management, establishing reasonablegovernance structure of listed companies in China and helping standardized the stock marke in this new perspectives.This paper select listed companies in China as the research object, thefirst，we study the reason, the means, the impact and the resulting economicconsequences of the real earnings management behavior of listed company,theanalysis showed that the behavior of real earnings management activities harmthe future profitability of listed companies and future investment levels, it oftenshows decline in performance in subsequent years,and thus will misleadstakeholders decisions and suffered serious losses. Then we analyze andsummarize the characteristics of the governance structure of listed companies,there is a low proportion of institutional investors,high ownership concentration,the lack of independence of the supervisory committee of the board, thechairman and general manager of two hats-one and other issues. Finally, weselected out the China’s manufacturing industry listed companies as samples,investigate the effect of the governance structure on the real activities earningsmanagement behavior, we concluded that The proportion of state-owned Sharesand the two roles of chairman and Dong Manager unityhas have positivecorrelations with the real earnings management, Proportion of the largestshareholder have a U-shaped relationship with the real earnings management,The proportion of institutional investors and board independence have negativecorrelations with the real earnings management, while Board size, boardindependence, the number of supervisors, executives stake have not verysignificant correlation with the levels of real earnings management, Finally, weadvanced some advice on improving the governance structure to suppress theactivities of listed companies real earnings management behavior.