Study On Earnings Management Measuring Models

The research on earnings management began in the 1980 s.So far, it has become an important research field of empirical accounting research. Complex motivation, diverse methods and covert operations mean that it is very difficult to measure the enterprise behavior of earnings management. Therefore, a reliable measurement model of earnings management is needed in order to effectively identify the earnings management behavior. a lot of efforts on studying the models for the measurement of the earnings management has been done by academic researchers and some measurement methods such as separation accruals model, specific project analysis, earnings frequency distribution model, real activities and deferred income tax methods. Among the above five kinds of measuring methods of earnings management, separation accruals model is the most widely used and also the most controversial one.Till now, how to measure earnings management is controversial because there is not a perfect measurement method. In view of this, in order to establish an econometric model which has higher identification effectiveness of earnings management, this paper reviewed evaluated and improved the measurement methods to promote the domestic research of earnings management.Based on small profit firms as test samples, DA calculated by each measuring model as the dependent variable, this paper find that JJ model’s is superior to reveal the earnings management behavior aiming at avoiding losses compared with others. But the applicability of JJ model for other motives of earnings management behavior remains to be verified.