The Nature Of Ownership, Ownership Structure And Earnings Management

In the capital market, it requires public companies to disclose the financial accounting information must be true and accurate reflection of the enterprise’s profit ability, financial status and its changes, but in reality, generally there is earnings management behavior which leads to accounting distortion.If letting its indiscriminate development, easily evolve into financial fraud, fraud and insider trading behavior, which will become an important factor affecting the development of the securities market.At present, our country exists generally in the listed companies with the phenomenon of "a dominant", due to the universal existence of information asymmetry, incomplete contract as well as factors such as the flexibility of the accounting standards,so that the earnings management irregularities is difficult to be eliminated fundamentally.How to restrain earnings management behavior, make the financial information can reflect the actual situation truthfully and accuratly for the growth of the modern enterprise, and even a country’s economic development is crucial, so the the influence of the ownership structure on earnings management of listed companies is a highly practical significance question.Equity structure embody a concentrated reflection of the contract between the main body of power condition, different ownership structure determines the firm control of the different stakeholders.In the securities market in China, due to the nature of the ownership of enterprises is different, different controlling shareholders of listed companies are facing financial policies, government support and supervision of environment and the management goal is different, which leads to different controlling shareholder control of listed companies, equity structure for the influence of the degree of earnings management exist significant difference.Therefore, the studyis based on the difference.After reviewing the related literature review, this paper firstly summarizes some theoretical results.Second, using information asymmetry, agent theory and contract theory, analyzes the nature of the ownership, the relationship between ownership structure and earnings management, respectively on ownership concentration and earnings management, equity balance degree and surplus management and ownership of the different nature of ownership structure on earnings management through theoretical analysis, the influence of difference of this a few aspects build a theory of chain, on this basis, put forward the research hypothesis.Through empirical research, this paper draw the following conclusions:(1) the ownership concentration and the degree of earnings management is u-shaped relationship, with the increase of equity concentration, the degree of earnings management presents upward trend after falling firstly;(2) the equity balance degree have significant inhibitory effect on earnings management.Checks and balances ability stronger, due to exist in common interests and the interests of the conflict, will make all the big shareholders formed between mutual cooperation and mutual supervision "internal checks and balances" relationship.(3) the corporation of the u-shaped relation with the ownership concentration and earnings management, ownership concentration and earnings management of the state-owned enterprise is not present u-shaped relationship, but a linear relationship, with the increase of equity concentration, earnings management increases.(4) the equity balance degree of earnings management of the state-owned enterprise inhibition compared with corporation is weak, in the state-owned enterprises such as easier to obtain financial and policy support, the other shareholders lack of supervision and the power, the degree of ownership balance role play was not significant, the second to fifth largest shareholders without effective restriction and supervision of the first big shareholder, and is otherwise in the corporation, checks and balances effect is better.This paper is divided into the following six parts:The first part is the introduction.Mainly introduces the research background and research significance of this paper, and the research direction and research content of this paper was summarized, and list the style architecture, points out the possible innovation points.The second part is the literature review section.Based on theoretical and empirical aspects of the literature review at home and abroad, carding summed up respectively to different ownership concentration and earnings management abroad, equity balance degree and surplus management and ownership, ownership structure and earnings management research conclusion, to follow the latest developments in the current study, found that scholars in this field in our country at present stage and which places for further study.The third part is the theoretical analysis and the research hypothesis. In this section, first of all, the theoretical basis of earnings management, equity structure is analyzed, through the principal-agent theory, asymmetric information theory, contract theory, theoretical analysis of the relationship between ownership structure and earnings management Secondly, combined with the existing literature research, put forward five hypotheses on the basis of theoretical analysis.The fourth part is the empirical research part design.It includes earnings management behavior of the measurement, ownership concentration and equity balance degree of measurement, such as the choice of control variables, and put forward in this paper, the scope of sample selection and model design.The fifth part is the empirical part.Through descriptive statistics, correlation analysis to analyze samples in general, by total samples regression, sample regression analysis of the proposed research hypotheses.The sixth part is divided into research conclusion and the suggestion. This article mainly uses the method combining the theoretical analysis and empirical study, through the theoretical analysis to explore the ownership of property, the ownership structure and earnings management, and design the empirical research model, empiricaltest.At present, most of the ownership structure and earnings management in the listed companies ignors the state-owned enterprises and private companies are different due to the proprietary nature of the influence of ownership structure on earnings management is different, and for the relationship between ownership structure and earnings management research, different conclusions.The contribution of this paper is mainly lies in the study of ownership structure and earnings management, through the analysis of the whole sample, sample analysis and the proprietary nature of join this important influencing factors, contrast study of state-owned enterprises and private companies in the aspect of equity structure on the influence of the degree of earnings management have difference, what is the difference, and through scientific and reasonable theoretical arguments, the empirical analysis of listed companies in our country actual situation, hope from the perspective of the new rich:an empirical study on the impact of ownership structure on earnings management, and the state-owned enterprises and private companies help establishing a reasonable equity structure respectively.