The Influence Of Managerial Self - Confidence On Corporate Earnings Management

In recent years, there are countless research on companies’ earnings management. The vast majority of them is based on the "rational economic man" hypothesis, however, with the deepening of development and research, scholars have found that many managers are not perfectly rational decisions. There are many kinds of performance, managers are irrational. What attracts the most attention is that the influence of administrators’ confidence degree. Based on the research achievements for managers confidence, accounting policy choice and earnings management. Set A-share non-financial firms as sample, which listed in Shanghai stock exchange between 2010 and 2014.Put comprehensive consideration about managers personal characteristics and the external performance into a science method of evaluation managers confidence, then use the modified JONES model, managers confidence as explanatory variables, company earnings management degree as the explained variable, select the appropriate control variables to establish regression model, using multiple regression method empirically governor confidence degree and the relationship between the degree of earnings management.The empirical research shows that:Management level of confidence is significantly associated with the degree of earnings management. Compared with the negative earnings management, managers tend to be more positive earnings management. Compared with the appropriate confident managers, overconfident managers tend to make positive earnings management. In addition, the article also found out the relationship between control variates and surplus management. According to the results of this empirical study, this paper finally puts forward the corresponding suggestions. The suggestions below are included. Reduce the affects taking by managers’ confidence degree through completing company governance structure. Enhance managers’ awareness of overcoming harmful effects by psychological factors. Set up scientific system of evaluating managers’confidence degree. Strengthen supervision of surplus management in the accounting policy choice. Standard accounting information disclosure system. Strengthen CPA auditing. The last one is, quicken the pace of building surplus management theory.