Research On The Influence Of Ownership Structure On Earnings Management

The earnings management in Chinese listed companies is due to the flaw of corporate governance. All of those, the flaw of ownership structure is the main cause. The ownership structure is composed of ownership characteristics and ownership concentration degree. And the ownership structure is just a system about assigning the con troll power among the shareholders. Because the ownership characteristics affect the owner’s behavior and the ownership concentration degree impact the owner’s power, so that the ownership structure affect the earnings management.The date of 2014 display, the market of passenger car in our country is huge, and growing fast. But the market share of independent brand passenger car is low, and is gradually decreased. How to improve the ownership structure of our country’s auto industry listed companies, improve the efficiency of the corporate governance, and enhance the overall level of the automobile industry and independent brand passenger car market share, has become very urgent. Based on this background, this paper analyzes that the ownership structure affect the earnings management in two sides, the one is the ownership concentration characteristics and the other is the ownership concentration degree. The paper selected in 2005 to 2013 in Shanghai and Shenzhen A-share board car industry listed companies as samples, with discretionary accruals represent the earnings management, and research the effect of different ownership on earnings management. Firstly, the paper drew on the principal-agent theory, the efficient market hypothesis, information asymmetry theory, equity incentive theory, interest synergies theory and combined with domestic and international literature review of relevant studies to determine the perspective of the study. And then defining the relevant concepts and theoretical analysis and proposing research hypotheses. Then we designed study, identified study variables and were going on regression analysize. The results show that there is a positive significant effect on ownership concentration and earnings management. The proportion of the first shareholder is higher, the higher the degree of earnings management. Equity balance degree and the degree of earnings management exists significantly negative influence. The 2 to 10 shareholding ratio is greater, the lower the degree of earnings management. The interaction of the state-owned shares and the proportion of management shareholding on the extent of earnings management has a positive significant effect.Finally, the paper puts forward some advice for earnings management.