The Choice Of The Ways Of Earnings Management Based On The Different Financial Position

In recent years, both in China and international countries, the financial fraud happend in the listed companies very often.this kind of phenomenon has become obstacles for the long and healthy development of the market in Chinese securities.For the earnings management behavior generally exists in the listed company, this article mainly from the Angle of the financial situation, probing into the earning management behavior of our country listed company before Public insurance of new shares,mainly based on public listed companies in China before the issuance of earnings management behavior, exploring the election tendency and the degree of earnings management behavior.In this paper, I have summarized the motivation and the selection tendency of the earnings management, and the financial conditions in several aspects,As the oretical basis, making foreshadowing for subsequent empirical research,In the empirical analysis part, we choose the 2007-2011 public offering of the Shanghai and shenzhen a-share listed companies as samples,and the comprehensive measure financial situation-Z index as explained variable financial data,Through the cross section of modified Jones model to measure accrual earnings management level, to the classical model of Roychowdhury and Zang as a measure of the real activity degree of earnings management,Respectively explored two questions,which is the earnings management tendency and degree of listed company,based on different financial condition.On the above data model design and multiple regression, we found that Chinese listed companies publicly issuing financial situation is positively related to relationship, of the choice of the ways of earnings management and in real activities. In addition, When the listed company’s financial condition is better, they will take the smaller of the extent of earnings management, whether it is a real earnings management or accrual earnings management.finally,this paper summarized the results of empirical analysis, and put forward Suggestions on the management of earnings management behavior.