Study On The Influence Of Earnings Forecasts Of Securities Analysts On Earnings Management In Listed Companies

In recent years, the social from all walks of life both at home and abroad is generally focused on the earnings management, because the accounting fraud scandals emerge in endlessly, most existing earnings management behavior of listed companies and information disclosure quality under question. Earnings management behavior of listed companies directly results in the decrease of quality of accounting information disclosure, make enterprise financial information can not be open and transparent reflect its operating situation, lead to investors and other related departments to make bad decisions, seriously affect the use of economic interests of stakeholders, so how to suppress the earnings management behavior of listed companies is imminent. There are various influence factors of earnings management, this article mainly from the perspective of analyst earnings forecast, to study its impact on earnings management level and degree.The purpose of research is to study and analyze the influence of earnings forecasts of analysts on earnings management in listed companies in China. To achieve this purpose, this paper in divided into the following parts. The first part introduces the background, purpose and significance, and has a research on the domestic and foreign literature about earnings forecasts of securities analysts and earnings management, so as to base the research on the previous studies. And then it introduces the main content and research methods. The second part makes an introduction of the relevant concepts and theories, respectively introducing the concepts of earnings forecasts of analysts and earnings management, and the theories of efficient capital market, information asymmetry and behavioral finance as a foundation for the later research. The third part analyzes the status of earnings forecasts of securities analysts and earnings management in listed companies and makes a qualitative analysis, providing support for the following research. The fourth part combines normative research with empirical research, and puts forward hypothesis based on the above theoretical analysis. A total of5328data between2010and2012from1776listed companies are selected as the sample. The indexes such as earnings forecast errors and dispersion and the number of analysts serve as the substitution variables of earnings forecasts of analysts to explain the influence degree of earnings forecasts of analysts to earnings management in listed companies. The empirical result shows that listed companies may adjust earnings management upward or downward under the influence of earnings forecasts of analysts. Because the influence of factors of earnings forecasts of analysts on earnings management of listed companies in China has respective characteristics from the perspectives of degree of direction. The representation is the comprehensive result of the interaction of factors of earnings forecasts of analysts. The Sixth part gives proposals for standardizing earnings management in listed companies through improving the information quality of earnings forecasts of analysts, perfecting laws and regulations to inhibit earnings management in listed companies, and encouraging rational investment of investors. The final part gives a summary and makes an conclusion.