The Effect Of Certified Public Accountants’ Personal Characteristics On Earnings Management

Earnings management is a hot topic in China’s stock market.Accounting earnings are especially important for investors and listing Corporation,which have a lot of investors.High quality enterprise earnings performance for the enterprise to achieve the profit has good cash payment ability,the company has a good development prospects,in contrast,if the company performance is not good asset operation ability,no good prospects for development,the profit is not good cash payment ability,even in the presence of profit manipulation phenomenon,these are low quality enterprise earnings performance.In recent years,with the continuous innovation of accounting theory and the continuous changes of financial statements,the accounting practices are becoming more and more complicated,which makes the accounting practices more complicated and more difficult to understand.On the other hand,due to the securities regulatory authorities are through the accounting earnings index of listed companies from the issuance of shares listed,share rationing eligibility,special treatment(st)until termination of the listing of the whole process of evaluation and supervision.Therefore,listed companies will to finance or avoid the cancellation of the qualifications listed,management will in order to obtain their own interests,are willing to carry on the management to the accounting earnings,even regulations of accounting standards also turn a blind eye,caused very serious effect to the earnings quality of Listed Companies in our country.The frequent occurrence of accounting fraud events,such as foreign communications world,Enron,Parmalat,Xerox and Merck pharmaceutical company’s financial fraud cases,the red light industrial,Yinguangxia,Wuliangye,Kelon and other company’s financial fraud case,registered accountants have unshirkable responsibility.In such a large background,earnings management is associated with the personal characteristics of the certified public accountants,and the relationship between the individual characteristics and the earnings management of the registered accountants,so as to achieve the purpose of optimizing the earnings quality of the listing Corporation,has important theoretical and practical value.This paper selects Shanghai A-share 477 samples of listed companies,to manipulation of accruals to measure the listed company earnings management,selection ofCPA’sgender,age,education,profession,position,experience,politicalaffiliation,graduati on colleges,offices,qualifications,general eligibility age as independent variables.The results showed that the age,experience,position,professional,graduation,and all of the eligible age were significant influence on earnings management.The gender and political outlook of the CPA had a significant effect on earnings management,but the significance was weak.The consistency of accounting earnings and economic income reflects the degree of earnings management of listed companies and CPA is very critical external independent supervisors,improving corporate governance,earnings management and stakeholders can according to the audit report to better judge the listed company earnings quality.Before a lot of research is focused on the accounting firms,this paper combined with the current situation of our country’s capital market,based on the existing research on the impact factors of earnings management,and put forward the new influence factors of earnings management.Therefore,this study has important implications for the recruitment and rational allocation of human resources,and enrich the research system of earnings management in China.