An Empirical Study On Earnings Management Changes Of The Chinese Listed Company

Since the beginning of the last century, Earnings Management has gradually become a hot topic in the industry with the continuous development and improvement of the capitalist market. For our country, the rapid development of reform and socialist market economy both make Earnings Management more and more common and serious. By investigation, it is found that the loopholes and imperfections of accounting standards provide an opportunity to Earnings Manage for listed companies’managers. In order to bring China’s accounting standards more in line with international standards, and further improve China’s system of accounting standards to reduce Earnings Management, Chinese Ministry of Finance promulgated a new "Enterprise Accounting Standards" in2006, and implemented in January,2007. On one hand, in order to test the prevention and control effect of the new "Enterprise Accounting Standards", on the other hand, in order to study the changes of Earnings Management of Chinese listed companies after the implementation of the new standards, the author puts forward five hypotheses and selected China’s listed companies as sample to do an empirical research and come to the following conclusions:First, since implementation of the new accounting standards in2007, the degree of China’s listed companies’Earnings Management has decreased. In this paper, we found that the degree of Earnings Management from2004to2006is more serious than that from2007to2011. Especially, the empirical results of hypothesis4given verify this point more effectively. It consists with Zhu Wei’s conclusions.Second, ST Company has more possibility to manage earnings than non-ST-enterprise. The empirical study found that the accrued profit project that ST companies can be manipulated are more than non-ST-enterprise, which fully shows that ST enterprises to manage earnings are more possible than non-ST-enterprises after the implementation of the new accounting standards in2007. Furthermore, the conclusions of this study also reminds regulators to focus on strengthening the control of non-ST companies. This is consistent with the Li Jing’s conclusions.Third, the fair value measurement has become an important measure to manage earnings after the new accounting standards, and the measures of accounting policies have been no longer evident. In this paper, we found there is a significant positive correlation between profit project and the fair value measurement, and the relationship between accounting policies change is not significant after the implementation of the new accounting standards. From another point of view, it also reminds the relevant regulatory authorities to strengthen the fair value measurement project audition, accordingly, to effectively reduce the listed companies’Earnings Management.