The Research Of Self-serving Performance Attribution Behavior Of Listing Corporation On China’s GEM

Listing Corporation performance attribution information is one of the financial report contents, which explains the reason why the performance change.The《annual report guidelines》——twenty-second guideline that the Commission issued in 2012 requires the companies explain reasons of the performance changed in detail,but there is no specific requirement on how to explain,therefor performance attribution information disclosure has the characteristics of flexibility and non unity, which provide the opportunity and space to manipulate for company management layers. For the decentralized responsibility, enhancing company image, to induce investors to purposes, managers may process the performance attribution information so that which facilitates them.When companies performance is good,they emphasize which is caused by the internal management; when companies performance is poor,they emphasize which is caused by the external environmental factors. This behavior is called self act of performance attribution or self-serving performance attribution behavior.This paper takes the listing corporation on China’s GEM as a sample, which examines whether the listing corporation on China’s GEM have self-serving performance attribution behavior when they disclose the performance attribution or not,and this behavior will bring risk to investors and companies.According to this,this paper puts forward effective countermeasures avoiding self-serving performance attribution behavior risk.Those countermeasures can help investors to avoid the risk of investment, improve investment quality, make the manager to avoid excessive self-confidence and enhance the value of the company. The paper is based on the domestic and foreign scholars’ research and takes listing corporation which is listed on China’s GEM in 2013 as the overall sample.According to earnings per share and earnings per share compared to the rate of change in the rankings in 2012,this paper selects 30 performance companies and 30 poor performance companies as the research sample.It usesthe method of content analysis to read the sample firms performance attribution carefully and quantizes and values the language information quantification.It uses descriptive statistics and T test to verify the existence of self-serving performance attribution behavior in the annual reports of listing corporation on China’s GEM.The study finds that:Self-serving attribution behavior is ubiquitous in listing corporation on China’s GEM.Good performance companies mention controlled interior,as management contribution and their efforts when they describe reason of performance generated.while the poor performance companies tend to mention the macro economic environment, the state macro-control,natural disasters and other uncontrollable external factors to avoid their responsibility. Secondly, from the typical case perspective this paper takes "Power Leader shares" as an example and analyses self-serving performance attribution behavior of Listing Corporation on China’s GEM.This paper also analyzes the risk of attribution behavior self-serving performance from two aspects of investors and companies based on the above research.For investors,self-serving performance attribution behavior adversely affects the reliability and relevance of information so it can mislead the investors to make the wrong investment decision; for companies, if self-serving performance attribution behavior is found by investors,it will defame the company. At the same time,self-serving performance attribution behavior can further lead to management overconfidence, and make the managers produce behavior deviation so that they have an hopelessly optimistic view of their own management ability and run their business blindly.Finally, this paper puts forward the concrete countermeasures to prevent the self-severing achievement attribution behavior,and avoid its risk from four perspectives of the government, CPA, companies and investors.