Aresearch On Relationship Between Ownership Structure And Earning Management In GEM Ipos

Earnings management is not only an accounting behavior, but also a management behavior. The existence of earning management is the reason which causes imperfect corporate governance; ownership structure is one of most important part of corporate governance. Therefore, ownership structure is regarded as research object, analyzing the correlation between earning management and equity structure. Most of previous literatures focus on accrued earning management as the important research object. In the article, real earning management is regarded as another important research object in the analysis framework. We should investigate the correlation between earning management and equity structure under the circumstances of the growth enterprise market in China.Based on the theoretical part, the article summarizes the research results of previous literatures from both domestic and abroad. Firstly, the basic theory of earnings management and equity structure are described in the article. Then, we put attention on the unique equity structure Characteristics of GEM listed companies in China. Finally, four significant indexes such as equity concentration, equity restriction, Institutional investors’shareholding, corporate executive shareholding are regarded as key form of ownership structure to investigate the relationship between the real earning management, accrued earning management and equity structure. The article selects data of listed firms in GEMFrom 2009 to 2012, eventually get 355 sample data, in order to calculate accrued earning manipulation and real earning manipulation. Through the empirical study, we can get the final result, both real earning management and accrued earning management present U-shaped relationship with ownership structure. Ownership restriction is obviously negatively related with real earning manipulation, but it has no significant relationship with accrued earning management. If the shareholdings of institutional investors are higher, both real earnings management and accrued earning management will be smaller. The proportion of executes shareholding has no significant influence on earning management behaviors.Depend on the empirical results, the article propose some useful suggestions.