The Empirical Research Between Cross-listing And Earnings Management

Since “qingdao” beer completed the listing in the HongKong, the researchabout the cross-listing has became the research focus in the academia. the previousstudy about the cross-listings focus on the motive and effect；While the earningsmanagement has been studied by scholars all over the world. for the pros and cons ofearnings management behavior relationship has also been a focus in theory researchand empirical study，and the empirical study on earnings management behavioroccupies the mainstream status. On this basis, this article combine cross-listings andearnings management behavior in order to have empirical research on them. Based onthe2010-2012with A+H share listed companies as samples, and select the sameamount of pure A-share listed companies on the basis of year, industry,and the assetsize.and then constructed the empirical models to test.First of all, the research of this paper is based on the literature research,combined the difference with the Overseas and domestic capital markets,and takeexample by the former scholars study about cross-listing and earningsmanagement,Put forward the first hypothesis of this paper:A+H cross-listingsvariables and negatively correlated with the degree of earnings management.for theassumption,This paper set up a specialized regression model,and carried out theregression analysis with the help of SPSS19.0statistical software.The empiricalresults show that there are significant correlation between cross-listings and earningsmanagement, and they are negative correlation, so the hypothesis was established.Second, in reference to the《Accounting Standards for Business Enterprises》Started application from2007，The new guidelines stipulated:After the provision forimpairment of long-term assets, provision of impairment can’t turn it back, Managersalways think asset impairment was the most flexible means of earnings management,in order to understand whether the restrictive function of cross-listing to earningmanagemen will strengthen or not..So this paper puts forward the secondhypothesis:With the increase of the proportion of long-term assets impairmentprovision, the restrictive function of cross-listing to earning management willstrengthen,And the establishment of the model can also be further tested in the firsthypothesis。Through the empirical test results showed that the hypothesis is notestablished，that is means there will be no significan difference between A+H sharelisted companies and a share listed companies under the influence of the1ong-term asset，Further affirmed the regulators issued policy played an important role inperfecting market。The last,This paper put forward assumption about Equity balance degree、Cross-listing and earnings management Based on the reference on the basis ofprevious research literature。 And put forward the third hypothesis: With theimprovement of ownership balance degree, the restrictive function of cross-listing tothe earning management will weaken.All in all, this paper study on listed companies considering whether to crossfirst play a role of reference, then further clarification in regard to the improvement ofthe capital market and improve the mainland is narrowing the gap between countrieswith Hong Kong, in order to Sure and incentive the supervisory organization todevelop a more perfect capital market.Finally， for the investors’ investmentdecisions have provided the certain basis.