Study On Earnings Management And Top Managers Change Of Chinese A-share Listed Companies

With the development of securities market, the problems of earnings management appear gradually which have become the hot spot academic. Since earnings management is done by managers of companies, the behaviors of managers can inevitably influence earnings management, top managers turnover, It’s a critical issue about the top managers turnover, which is a important decision of the shareholder conference and board of directors and as a key control mechanics for managers. In recent years, there is a relative high frequency of top managers turnover in domestic listed companies. Under the dog-eat-dog situation, does the turnover can bring real improvement of the corporate operating performance or just earnings management. It has great significant to do positive research on the relationship between the top managers change and earnings management, Not only help enterprises improve corporate charter, careful decision-making executives change, and promote the healthy development of the company, but also help investors and creditors to make the right decisions, regulators can better perform its regulatory responsibilities, improve relevant laws.This paper is based on the principal-agent theory, asymmetric information theory and contract theory and so on, using the modified Jones model, deeply analyzed the relevance among the top managers change and the earnings management, detailed review of the relevant literatures of the early home and abroad, selected2009to2011in Shanghai and Shenzhen listed companies which have changed top managers, through abnormal and extraordinary items and discretionary accruals, source on this basis, according to the succession of different divided into external and internal succession change of executives to employment, and tested. We draw some conclusions from the statistical tests and the regression analysis:(1)the listed companies manage the earnings through the abnormal and extraordinary items and the last and before yeas they improve the achievement through increasing the abnormal and extraordinary items.(2)top managers change of the listed company after the change of the previous year and change a year by maneuvering accrued profit of positive earnings management, so as to improve the company’s performance, the change of the listed company has not been the expected surplus offset phenomenon, instead appear less obvious are the maneuverability of accrued profits.(3)There is no significant difference through abnormal and extraordinary items, but has significant difference through discretionary accruals in the years before turnover and experiencing turnover to manage earnings between insider succession and outsider succession, reflect the change of the previous year, internal succession than external employment of listed companies have a more significant positive earnings management behavior of listed companies, the change of the external employment of listed companies than internal succession of listed companies have a significant negative earnings management behavior, but in a year after the change, the differences of two succession model is not significant.The paper is organized as follows:The first part is introduction, an overview of the research background, the purpose of research, as well as research significance; The second part is theoretical analysis and literature review, based on the theory of earnings management and top manage change, Scholars were reviewed for executive changes, surplus management, executive changes with the research of earnings management; the third part is study design, put forward the research hypotheses on the basis of theoretical analysis, and select the listed companies who change top manages between2009and2011as the research object, than, Select the model; The fourth part is empirical test results and analysis; the fifth part of the study is conclusions and outlook,summarize the research results of theoretical analysis and empirical tests, reached the following conclusions.The innovation of this paper lies in:(1) Besides research the correlation between earnings management and top manage change, we Empirical analysis focuses on the impact of succession sources of earnings management, enriched the literature on earnings management of listed companies motivation for understanding the behavior of senior executives of listed companies to provide empirical evidence--executives of the success of a business is important for executives to understand the motives could be better motivate executives to improve business performance.(2) This article select the listed companies data after the implementation of the new accounting standards, provide the latest empirical evidence. The shortcomings of this study is the lack of in-depth analysis of the direction of the outgoing executives of listed companies whereabouts behavior of executives for a successor, which is the paper further study.