An Empirical Study On Earnings Management Of Institutional Investors And Listed Companies

Since the reform and opening up, especially along with the rapid development of economy in China, the private enterprise of economic status on the rise. Listed companies’earnings management behavior been concerned.The earnings management causes the accounting information may be can not objectively or fairly report the business situation of enterprises. And it will always mislead investors’and regulator’s.Surely, decision seriously may be impact the effective allocation of social resources. So limited and Constraint some earnings management is may be very important. We must say that institutional investors as a important role. In recent years in the Chinese capital market gained a rapid development This paper expatiates the definition, indicator system, indicator analysis methods and control line theory of human resource, and makes a summary of the status of the earnings management in our country.Based on theory, this paper takes Company for example to do an empirical study to meet of capital markets all show, because their shareholding, holding time, supervision and cost of the different characteristics, institutional investors in participate in the company management supervision role play there exist obvious differences.And when institutional investors in their shareholding, holding time, supervision and cost characteristics of the different, brings to the enterprise supervision function is also different.Listed family firms in the2008-2010accounting statements as a sample for empirical analysis. Through to the1486companies listed on the family business earnings management of the effective measurement and the degree of the institutional investors holding analysis found that the differences.And from two aspects of theory and empirical separately discuss the different types of institutional investors and listed companies of the relationship between the information disclosure. Get the research conclusion:positive and earnings management shares a significantly negative correlation, negative holdings and earnings management is related degree, mixed ownership negatively related and earnings management.Due to the special nature of the coexistence of family business ownership and management, content studied the family business institutions investors difference between holding on earnings management is different. Examine the different types of institutional investors, listed family firms with earnings management behavior, and provide a reference for China’s regulatory bodies to stabilize the capital market vigorously develop institutional investors and their participation in the corporate governance of listed companies, in order to draw more specific the conclusions put forward more specific recommendations.