Method Of Earnings Management And The Going Concern Opinions

For a long time, management is keen on earnings management, that caused the attention of regulators and external information users, but the phenomenon of earnings management still unavoidably exist,that produced adverse effect for the quality of accounting information. The value of the enterprise is responsed by accounting information, and the quality of accounting information has played a pivotal role on the market control.The loss of caused by Going-concern uncertainty is uncounted,and this kind of accounting information is very important for the investors and creditors,they can assess the risks just according to the disclosed accounting information.The biggest risk is that enterprise is unable to continue as a going concern or even bankruptcy for investors. This article take management methods and previous GCO as the research object,It discuss the relationship between earning management and GCO.Literature research and empirical research method are userd in this paper.First of all, this article analysis the concept of earnings management、motivation、 implementation methods and analysis the development of GCO.At the second,according to Asymmetric Information theory and Principal-Agent theory,we detailed analysis the reasons why earnings management emerges and develops, through analysising of the economic consequences of going concern audit opinions,we can Understand the pressure of management.At the last,according to the hypothese based on previous research and the existing theoretical research,this article put forward hypothesis and test hypothesis using the method of empirical analysis.Based on Chinese A-share listed companies of Shanghai and Shenzhen main board stock market from 2009 to 2012, this paper study the relationship between the two types of earnings management and going concern opinions by auditors using Logit regression analysis method.The study found that two types of earnings management in listed companies in our country are widespread exist, and the degree of earnings management vary widely.The auditor issued go-concern opinion based on he degree of earnings management.In addition,hidden behavior of earnings management does not affect the auditor to judge companies’ability of going concern. Using multiple regression method,this article study the relationship between previous GCO and earning management.The conclusion is that main reasons why listed companies manag their earningsare motivations of earnings management;the restraint effect of GCO is very limited.