Research On Earnings Management Of The Information Technology Companies In GEM Based On Governance Structure

As a hot phenomenon of company management, earnings management has been always the attention of scholars who are at home and abroad. For a variety of purposes such as the initial public offering, allotment of shares and avoiding being delisted motivation, companies carry out the behavior of earnings management to modify the related financial indicators. In our country, in order to obtain funds needed for enlarging the scale of production and developing the market, enterprises are targeting the capital market. The listed financing has become the best choice for the enterprises in our country. In the process of the listed, earnings management governance has always been a difficult problem for companies. There are many influence factors about it, and one is corporate governance structure which is considered to be the root cause of earnings management issues.The listed companies in the growth enterprise market which is also named GEM have poor governance structure, so they have a stronger motivation of earnings management. Since the growth enterprise market opened, earnings management behaviors of the isted companie in GEM have frequently taken up. Studying the impact which governance structure of the listed companies in GEM bring to bear on earnings management not only helps investors better understand the relevant accounting information of the listed companies, but also helps the relevant regulatory authorities make effective measures according to the characteristics of the enterprise themselves which promotes the healthy development of GEM. As a part of GEM the information technology company have their own characteristics, In consequence, exploring the correlation degree between governance structure characteristics of China’s information technology companies in GEM and earnings management by the method of empirical analyses plays a great part in protecting the interests of minority shareholders as well as promoting the governance structure revolution of the listed companies in GEM.After clarifying the relevant research literatures which are at home and abroad, this paper elaborates the theories of governance structure and earnings management. Secondly, combining with the characteristics of GEM, this thesis uses the model of modified Jones as well as financial data of the listed information technology company in GEM from 2009 to 2011 to speculate that if companies have the possibility of earnings management according to performance of the listed year and the next year. Then the paper analyses the circumstances of the earnings management of enterprises and make the empirical research on the influence factors earnings management behavior on this basis. Finally, in view of the theoretical foundationes and empirical analyses, this paper puts forward some suggestions to decrease the motivatioin of earnings management of the listed companies in GEM, promote the listed companies in GEM focus on normal assets management and business operation and improve reliability of financial statements.