| Since Qingdao Beer listed in Shanghai and Hong Kong stock exchange in1993as the first cross-listings enterprise, Qingdao Beer open the prelude of cross-listings enterprise. By the end of December31,2012, the number of compa-nies listed in the domestic capital market (Shanghai and Shenzhen stock exchange) and overseas capital markets in the developed countries and districts reached64. With the further expansion of cross listings, such enterprises in the overall value, ways of earnings management and corporate governance reflects its own charac-teristics, which reflects the characteristics of the capital market in China. Previous research at domestic and abroad has carried on the thorough analysis and research, including the comparison of the earnings quality between cross-listing enterprises and non-cross-listing enterprises. Academic study has formed a relatively consis-tent research conclusion:compared with the non-cross-listing companies, cross-listing companies’ accrued earnings management level is lower, but its real earnings management level is higher.However, along with international exchange and steady progress of the con-struction of the legal system in our country, these features also change at the same time. From the21st century, China’s capital market has been plenty of develop-ment, meanwhile, policy regulation and investor protection level has been greatly improved, gradually narrowing the gap between China’ capital markets and devel-oped countries’capital markets. Especially the issue of the new "accounting stan-dard for business enterprises" in2007, has a significant influence on the way of earnings management. while the accounting standards for enterprises is not the source of earnings management, but the strict accounting standards effectively re-strain earnings management, inhibition of earnings management behavior can fur-ther improve the level of information disclosure of listed companies and establish and improve the effective information disclosure mechanism, and improve the lev-el of the investor protection and supervision level. The existing study of cross-listings enterprise earnings quality have proved:compared with the foreign country, the regulation efficiency of China’s capital market is lower, which leads to the non-cross-listing companies’earnings quality is significantly lower than the cross-listing companies. But the previous research is to investigate whether there is earnings management behavior, and if there is a difference in earnings manage-ment between cross-listing enterprises and non-cross-listing enterprises, and most studies measure the level of earnings management as the accrued earnings man-agement.This paper will take the cross-listing and non-cross-listing companies as the research object, comparatively analyzing the difference in earnings management between the two groups of companies. In addition, This paper will take the year2007as the boundary, examining the change in earnings management way be-tween the two groups of companies before and after the new accounting standards issued in2007, in order to draw conclusions:the implementation of new account-ing standards on the surface have played an important role in inhibiting accrued earnings management, but actually encourage enterprises to adopt real earnings management behavior which is more covert. This article will research from three aspects:first of all, before the new accounting standards issued in2007, examine if there is a difference in accrued earnings management and real earnings manage-ment between the cross-listing companies and the non-cross-listing companies. Then, after the new accounting standards issued, examine if there is a difference in accrued earnings management and real earnings management between the cross-listing companies and the non-cross-listing companies. Finally, to test the changes in earnings management between the two types of enterprises before and after the new accounting standards issued in2007, which examine new accounting standards on the impact of earnings management way transformation. This paper uses empirical research methods to test the above three aspects. Specific arrange-ments are as follows:The first part:introduction. On the whole, the paper introduced the research background and significance of this article, research methods, the main contribu-tion, the research content framework and empirical research and the literature re-view.The second part:theoretical analysis. This part introduces the meaning of cross-listings, introduction to the theory of earnings management as well as the differences in financial reporting environment of domestic and overseas market.The third part:study design. Through the previous related literature and dis-cusses, put forward the research hypothesis; present the data sources and sample selection criteria; explain variables and control variables, and design the empirical model.The fourth part:the empirical result analysis. This part includes descriptive statistics and difference between test, correlation analysis and multiple regression analysis results to empirical verification of research hypothesis, In addition, this paper also designs complement inspection assumption for further verification.The fifth part:the research conclusion, limitation and Suggestions. According to the result of empirical test, this paper reveals the changes in earnings manage-ment between the two types of enterprises before and after the new accounting standards issued in2007,Then according to the research conclusion put forward appropriate policy recommendations; Finally the research insufficiency is summa-rized, and the direction of further research is pointed out.Through the empirical test, this paper makes the following conclusions:(1) Before the new accounting standards issued in2007, by the comparison of earnings management (real earnings management, accrued earnings management) between the two groups of companies, this paper find that cross-listing companies’ accrued earnings management level is lower, but its real earnings management level is higher. To a certain extent, it proves that cross-listing can inhibit the ac-crued earnings management behavior of enterprise, thus enabling the implementa-tion of more hidden real earnings management behavior.(2) After the new accounting standards issued in2007, by the comparison of earnings management (real earnings management, accrued earnings management) between the two groups of companies, this paper find that there is no significant difference in accrued earnings management and real earnings management be-tween the types of companies, which proves the means of earnings management tend to be more consistent.(3) Through the theoretical analysis and empirical test this paper shows that the implementation of new accounting standards on the surface have played an important role in inhibiting accrued earnings management, but actually encourage enterprises to adopt real earnings management behavior which is more covert.The contribution of this paper is mainly manifested in two aspects:(1) From the research angle, the previous research is to investigate whether there is earnings management behavior, and if there is a difference in earnings management between the two groups of companies. This paper will take the year2007as the boundary, examining the change in earnings management way be-tween the two groups of companies before and after the new accounting standards issued in2007.(2) In the research content, most studies measure the level of earnings man-agement as the accrued earnings management. In this paper, the real difference in real earnings management between cross-listing companies and non-cross-listing companies as the main object of study.In this paper, we study the shortage of the mainly includes:First, previous studies have confirmed that the accrued earnings management and real earnings management alternative, and main cause of alternative on each other is the regulation of accounting standards, so this article take the accounting standards as the breakthrough point to investigate accounting standards issued. But there are many factors affecting business earnings management, for example, the cost trade-offs of earnings management. Therefore, this paper may be not compre-hensive;Second, because the cognitive ability is limited, this article cannot be able to end all control variables of the accrued earnings management and real earnings management;Third, due to data limitations, this paper cannot comparison study the change of earnings quality before and after cross-listing. |
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