The Effect Of The Accrual Earnings Management And The Real Earnings Management On Auditing Report Lag

Timeliness is an important characteristic of the quality of financial information of enterprises. The most important factor in deciding the timely disclosure of financial statements is the auditing report lag(ARL). Earnings management includes the accrual earnings management and real earnings management. Two different kinds of earnings management are important factors affecting the ARL. Further exploration and study on the relationship between earnings management and the ARL have important significance for improving the timely disclosure of the accounting information. In this paper, we utilize empirical research and normative research and examine the effects of the accrual earnings management and real earnings management on the ARL using data of Chinese listed companies from the year 2007 to 2013.This paper is divided into six chapters. The first chapter is introduction; the second chapter is the literature review, in this chapter, we analyze the main research literature at home and abroad about the accrual earnings management, real earnings management and the ARL; the third chapter analyze theoretically the impact of earnings management on the ARL; the fourth chapter introduce the research design; in the fifth chapter the effects of earnings management and real earnings management on the ARL are tested and analyzed; the sixth chapter is the conclusion, summarizing the full text, limitations and research directions for further research.The main conclusions obtained in this paper include:1. Listed corporation will also use the accrual earnings management and real earnings management as two kinds of means of earnings manipulation. Affected by the accounting standards,the regulatory environment and the increase level of audit firm, the space of the manipulation through accruals earnings management is reduced, the effect of the accrual of earnings management on the ARL is not significant.2. The higher is the degree of real earnings management, the longer is the auditing report lag. Because the real earnings management has its own covert and flexibility and is not easy to be identified, enterprises began to tend to the real earnings management, audit firm will spend more time, increase substantive procedures to concern enterprises. The real earnings management and the ARL have significant positive correlations, the auditor began to pay more attention to the real earnings management.3. Leading as the board of directors and the general manager have positive correlations with the ARL. It is the three variables to measure the structure of board of directors that worth our attention. The impact of the total number of the board of directors, the ratios of the number of independent directors and the board of directors on the ARL do not pass the significance test, so the role of the structure of board of directors in improving the timeliness of accounting information should get more attention.