The Surplus Management In Increasing Issues In Stocks For Listed Company

As is indicated in researches,a majority of listed company increase issues in stocks when the corporate value is overvalued to raise more money. After that,the decline in performance suggest that listed company whitewash financial statements and manipulate profits,which becomes an important method of surplus managment.The paper is based on the related financial data of listed company and focuses on the inhibitory action of institutional investors.The paper list 000925 and 600115 as the subjects of the study and calculate ROA,ROE and EPS respectively according to their financial statements.We prove that listed company manipulate their earnings after analyzing the tendency of curves.I divide the whole article into four parts:the first part introduces the works on this topic and research meaning and present study to make preparation for the later analysis. The second part is about theoretical analysis. The third part is about empirical analysis. The fourth part tells us two examples to prove the points. In the last part,we sum up the research.