Social Capital And Earnings Management Of Listed Companies System

China is currently in the socialist market economy which, from the perspective of the market economy, China’s government plays a guiding role in a market economy, the market economy can not deliver timely information to stakeholders, where the capital market system is not perfect, and lack of efficiency. It led the government still has the right to speak in terms of business development.As China’s economic development, the government listed companies give a lot of preferential policies, but many systems still can not keep up with the pace of economic development; for example, the narrow financing channels for enterprises as well as more stringent market access policy and the like. But the government for some enterprises to survive the macro-control more resources, this has led to a lot of listed companies in order to further the sustainable development of the company, and the government began to actively establish a close relationship between the bank and that is to establish their own system of social capital, companies will use their Social capital of this well-established institutional and operational development of enterprises to bring more convenience; for example, easier access to sources of financing, to obtain concessions on taxes. At the same time, in order to put these benefits through the social systems of the regulated market and get away from the government, it is a listed company earnings management will choose a way to avoid regulation by earnings management to reduce the performance of enterprises, to avoid by the government’s investigation, therefore, we use the method of empirical study on the relationship between social capital and enterprise system listed companies to expand earnings management research.In this paper, institutional theory, resource dependence theory and rent based on the theory of social capital and earnings management system to do more comprehensive exposition of the relationship between the two has been studied elaborate on how social capital affect earnings management system was analysis and research for the development of enterprises to provide a reference in theory and practice.In this paper, in 2011- in 2014 the company listed on the Shen zhen Stock Exchange for the study,the study sample was 1111, by descriptive statistics and regression analysis showed: when to earnings management as the dependent variable, whether a company has state-owned shares( P1), whether a company belonging to the real estate industry(P3) and corporate loans from financial institutions amount of how much(P5) three cases have a positive impact on earnings management; and whether it is regulated industries(P2), and whether the tax benefits(P4) earnings management is not significantly affected. Finally, this paper draws Institutional Social Capital and Earnings management is relevant, that is, the stronger the system of social capital, the more companies will be in a positive way to manage earnings.