The Research On The Influence Of The Governance Structure In Listed Companies On Real Earnings Management

Investors, creditors and other stakeholders are very concern of anindicator-enterprise surplus. That directly influences their decision to make. Howeverat home and abroad in recent years, many financial scandal was exposed constantly, letus realize that there is a widespread manipulation of modern enterprise financialinformation, especially the accounting earnings information. Earnings management hasbecome the main method adopted by enterprises. However, at present most of theresearch of earnings management is concentrated in the accrued on the earningsmanagement of the project, especially in2006the new accounting standards coming onstage. On the one hand, because shrinking of accounting elastic makes enterprisesadopting the accrued on the earnings management space less and less; on the other hand,increasing regulation increased the risk. Therefore, the modern enterprise graduallybegan to use real earnings management activities to manipulate accounting information.It is widely believed that corporate governance structure and real earningsmanagement activities have close connection. The separation of ownership andmanagement formed a principal-agent relationship. The benefit inconformity betweenthe owner and the operator, together with information asymmetry led to the existence ofearnings management behavior. Corporate governance structure as a kind ofinstitutional arrangement must be able to solve the problem of agency and restrainearnings management behavior of enterprise effectively. Therefore, this article will takethe corporate governance structure as a starting point, to study its relationship with realearnings management.Based on the Shanghai and Shenzhen a-share manufacturing listed companies in2011data as sample, choosing partial variables of the ownership structure, boardcharacteristics and supervisors characteristics as an agent of the corporate governancemechanism, borrowing Roychowdhury model of real earnings management evaluationanalyze the influence between the corporate governance mechanism and earningsmanagement on real activities. As a result, some factors of corporate governancestructure has a certain influence on earnings management behavior. Through perfectingcorporate governance mechanism, can achieve the goal of inhibition of real earnings management activities.