The Empirical Research About The Influencing Factors Of Earnings Management Of The Special Treatment Companies Which Are Succeed In Picking Their Hats

Special treatment system is the unique management control system of the listed company inour country, whose main purpose is to warn the investors through prefixing “ST” or “*ST”in the listed company’s name, remaindering them the investment risk. However, due to thedisadvantages of this system, many companies with “ST” or “*ST” sign take variousmethods to pick a hat. Obviously, earnings management has been their first choice.Based on the above points, the main problem in this article we need to research is thatwhether the listed companies which are labeled “ST” or “*ST” do the earningsmanagement in order to success picking their hats. For the factors that impact the earningsmanagement behavior, financial indicators, corporate governance structure indicators andpolitical background indicators of the manager are considered, at the same time, theregression model is built to make the empirical analysis. Then it comes to the followingconclusions: all special treatment companies do the earnings management, many factorsinfluence their earnings management behaviors, such as asset-liability ratio,ROE and so on.Finally, some suggestions are brought forward.The innovation of this paper is the more accurate researching time, at the same time, thepolitical background of the senior executives is introduced. But, this article also has avariety of shortcomings, for example, the nature of the ownership of the listed company aspolitical factors can not be ignored, but in the study of this article, distinguish between theownership of the properties of the samples is not considered.