The Influence Of Executives Shareholding Lock-upperiods For Earnings Management

Separation of ownership and managerial authority caused the principal-agent problems,along with the completion of the reform of non-tradable shares, with the arrival of therestricted shares lifted, the phenomenon that senior managers make use of the right of thehand to take earnings management is more and more.It would affect the company’s virtualoperating results. Even seriously affect the authenticity of the company’s accountinginformation. This is not good for the healthy development of China’s capital market,too. Soresearch the influence of executives shareholding lock-up periods for earnings management isvery important. But no scholar research on earnings management from the perspective ofmanagerial ownership ban so far.When conducting empirical research in this article, put forward a series of assumptionsfirstly, and then choose valid samples of34companies from the Shanghai and shenzhen Ashares during2006to2012. The research is based on time-series data which is selected from2040original data up to September2013including seven variables,9indicators, tenquarters.Using the statistics software SPSS17.0to calculate and analyze, verify that thehypothesis can be set up, finally it is concluded that the there are earnings managementbehavior before and after the executives shareholding ban, especially it is more serious in thecurrent period of lifting the ban. The larger the scale ban is, the degree of earningsmanagement is also greater.The comanies which existed earnings management previouslyhave more motivation to take earnings management before executives shareholding ban andin the current period of lifting the ban. Hope research conclusion in this article can giveinvestors some reference opinions and give relevant regulatory authorities providing someempirical data.