Research On Stock-for-stock M&A Of Earnings Management And Its Influencing Factors

M & A is an important strategic decision the company’s future development. The relatively short history of acquisitions, mergers and acquisitions and the West have made great progress. Structural change in each country and cross-business group business model development, mergers and acquisitions play a very important role. With the development trend of the global economy, trade liberalization, with the convertible merger and acquisition has become popular. The main advantage is its payment enables companies to save cash flow, reasonable tax, reduce the debt ratio, anti-risk capability enhancement. With the success of the joint-stock reform, but also for the acquisition of the Convertible provides ample space for development. In stock M & A, companies have an incentive to management to enhance the use of surplus stock, in order to reduce acquisition costs. Related research has been concerned about this motivation leads to accrued earnings management, as capital markets are maturing and the system of legal supervision of sound corporate earnings means for adjusting is more and more diverse. So the study related issues convertible Merger earnings management, mergers and acquisitions of listed companies to regulate conduct, and to protect the enterprise’s financial statements issued before and after the merger, to improve the quality of accounting information is important.In this paper, the theory of stock-for-stock M & A and earnings management, introduces the relevant theories and econometric models of earnings management, and analyzed and reviewed the status of domestic and foreign scholars on both M & A and earnings management analysis and study of the binding. Firstly, in stock-for-stock M & A of 2012-2014 as a sample, according to Jones model calculates accrued earnings management as the dependent variable, the study year in M & A and M & A year ago the existence of a positive earnings management behavior, and should build Total maneuverability existence of earnings management regression analysis model was validated. Secondly confirmed the premise of the existence of earnings management, the factors that influence stock M Payment in earnings management research, earnings management factors There are many factors that could Adapted several metrics empirical analysis. The results showed that stock-for-stock M & A state-controlled enterprises compared to other enterprises of the greater degree of earnings management; the higher the concentration of ownership, the lower the degree of checks and balances, the degree of M & A business earnings management is higher; M & A business transfer payments in convertible stock merger in the proportion of larger, the horizontal greater earnings management. Finally, making the basis of relevant empirical analysis and argumentation, research and analysis obtained conclusions, and proposed in this paper and the lack of research and recommendations for further research.Research and innovation in this paper is mainly reflected in two aspects:(1) Current research related to earnings management literature deals with events convertible research is quite small sample of literature, this paper selects the three consecutive years 2012-2014stock-for-stock M & A as samples to study the existence of pre-merger earnings management behavior and on this basis, in-depth study of the factors that may affect the stock M in this particular payment on earnings management, and verified analysis; (2) This paper attempts to analyze the theoretical part of the premise of reasonable separation of ownership, mergers and acquisitions earnings management behavior exists with Game Theory.