Effect Of Ownership Structure GEM Listed Companies On Earnings Management

On the impact of ownership structure on earnings management, on the basis ofthe previous literature, research about the early literature on this issue is mainlylimited to the accrual of earnings management investigation according to theperspective of international academic research in recent years, expanding to more realearnings management activities, and this paper will base on Chinese companies listedon GEM and researching the Influence of ownership structure on earningsmanagement.This paper uses a standard research and empirical research method of combiningtheoretical research to pave the way for the empirical test, empirical tests oftheoretical studies as proof. In the theoretical part of the study, this paper summarizesthe domestic and foreign scholars on the impact of ownership structure on earningsmanagement literature, expounded on the basic theory of earnings management andownership structure basic theory.Earnings management infrastructure includes the definition of earningsmanagement theory, motivation theory influence and classification, earningsmanagement, including the principal-agent theory, contract theory and asymmetricinformation theory. Shareholding structure includes the basic theory of the meaningownership structure; characteristics of GEM listed company’s equity structure.On the basis of theoretical research on the nature of equity, ownershipconcentration, equity restriction three degrees of impact on earnings managementwere elaborated and proposed research hypotheses.2011-2012China empirical part isall GEM listed companies as samples,246samples were obtained after screening.Firstly, descriptive statistics for the sample, and then all the variables correlation test.Empirical test is divided into two steps; first calculate the accrued earningsmanagement and real earnings management, the second is the shareholding structureof earnings management influence on regression analysis. Based on the comparison ofearnings management measurement methods, choose the land bridge modified Jonesmodel to measure the accrued earnings management, sales manipulation abnormaloperating cash flows resulting from abnormal production costs resulting from theproduction and manipulation of the cost of discretionary manipulation leads toabnormal discretionary expenses level3individual indicators were true measure ofthe extent of corporate earnings management. Through the study concluded: controlling shareholder is state-owned nature ofthe reduced level of earnings management of listed companies; presence U-shapedrelationship between ownership concentration and earnings management; equityrestriction and real earnings management was significantly negatively correlated withaccrued earnings management negative correlation but not significant.