A Study On Earnings Management Of Listed Company And Executive Turnover

With the development of securities market in our country, earnings management has become the most obviously hot spot in the coming different problems. Especially the earnings management in the enterprise resulting from the executive turnover receive extensive attention of practice and accounting theory. The pre-literary paper did research on enterprise’ executives turnover and earnings management issue which mainly focused on the accrued project earnings management. This paper analyzes the manipulation of accrued project and the real activities to discover the earnings management behaviors and the executive turnover by using the empirical test. It does not only expand the existing theoretical research, but also promote the positive development of the companies by resulted effectively about earnings management and the improvement on the companies’ articles.First of all, this paper mainly demonstrates the background and meaning of executives turnover and earnings management in our country, then, the paper review theoretical results which discussed the executive turnover and the accrued project and the real activities earnings management. After introduce the meaning of executive turnover, accrued project earnings management and real activities earnings management, this paper does the theoretical analysis about the relationship between the executive turnover and the earnings management based on the principal-agent theory, asymmetric information theory, contact theory and relevant theory, then propose the research hypothesis based on the analytical results, and does the relevant research designation, building a testing model for the empirical research. The example I selected as the research object, is the executives turnover of the listed company from 2010-2012. Accrued project earnings management model based on selected and real activity earnings management model to test the earnings management behavior during executives turnover, and do more in-depth research based on the distinguish the regular turnover and irregular turnover from the reasons the executives’ demission. Through descriptive statistical analysis, correlation test and multiple regression test, I found:(1)Regular executive turnover in previous year, the company increased profits more obviously through accrued project earnings management and real activities earnings management than those do not turnover.(2) Regular executive turnover in those year, the company lowered profits more obviously through real activities earnings management than those do not turnover;(3) Irregular executive turnover in previous year, the company increased profits more obviously through real activities earnings management than those do not turnover.;(4)Irregular executive turnover in those year, the company has not more obviously behaviors to change profits through management than those do not turnover.The mainly contributions of this paper :(1) This paper studies accrued project earnings management and real activities earnings management in the meanwhile to analysis the relationship between executive turnover of listed company and earnings management. which make up the shortage of study on the real activities earnings management and executive turnover, it is also benefit to solve the increasing real earnings management.(2)The executive turnover include regular and irregular turnover based on the demission reasons, this paper study the executive turnover and earnings management at four aspects, include regular executive turnover in previous year, regular executive turnover in those year, irregular executive turnover in previous year, irregular executive turnover in those year. It is a development and innovation on the basis of previous study reports, which only studies the earnings management and the executive turnover at the horizontal and vertical aspects.