Earnings Management Motivation Corporate Issuers Of Asset-Backed Securities

Asset securitization is known as the fastest growing in recent years, one of the most successful financial innovation: as a new financial instrument, in the transfer, dissolve, disperse risk played a significant positive role: Issuer by having stable future cash flow of assets through certain packaged and issuing securities, through asset securitization, originally focused on the issuer’s risk diversification to all securitization of investment securities. Meanwhile, with the 2014 Asset Securitization in China since the explosive growth, the type of underlying assets continue to increase, the quality of the asset pool is also uneven, its operations and structure more complex, resulting in asset-backed securities issued by companies process contains significant incentives to manage earnings.Based on this, the paper listed companies in 2014 our Board and GEM sample, from both theoretical and empirical research on earnings management motivation corporate issuers of asset-backed securities. First, review the existing research results, based on the information disclosure system, the basis of asset pricing and bankruptcy remote assets such as securitization-related system to start on this issue of the impact mechanism analysis, and accordingly proposed two theoretical assumptions. Secondly, with the modified Jones model to calculate the manipulation of accruals as a proxy for the level of earnings management. Econometric model using cross-sectional data for empirical research on this issue, and based on findings made recommendations to improve the existing system of asset securitization.