The Empirical Research About The Ways Of Earnings Management Affect On Enterprise Financial Performance Of The Listed Companies On The GEM

With the introduction of the new accounting standards in 2007 and strengthening the securities market supervision, using the traditional way of earnings management has been limited, and enterprises are facing increasing risks. Business managers have to take a more subtle approach to earnings management in order to balance the interests of stakeholders. However, there are fewer studies on the enterprise financial performance from the perspective of different earnings managements, the paper carried out some exploration and demonstration for the phenomenon of financial performance affected by different ways to earnings management.Firstly, it found that foreign scholars had more comprehensive understanding of earnings management when consulted the relevant articles of earnings management literature. More and more foreign scholars also began studying on the real earnings management and they have divided earnings management into two ways, that is, accrual earnings management and real earnings management. However, the domestic scholars had the superficial understanding of accrual earnings management. Therefore, we learn from the introduction of foreign scholars of real earnings management measurement model of GEM listed companies earnings management to conduct a more comprehensive analysis. Then, based on the theoretical analysis, impact on enterprise financial performance was analyzed from the ways and hysteresis of earnings management. Finally, based on the analysis of the mechanism,281 companies listed on GEM 2009-2011 were selected as samples, the effect of earnings management on enterprise financial performance was compared by the regression of listed earnings management current year and three consecutive years of annual data points from the first year to third year. Empirical earnings management of GEM impact on corporate financial performance, enterprise financial performance are divided into financial performance results and enterprise value two aspects, the paper finally came to the following conclusions:(1)Companies listed on the GEM on the purpose of successful listing at current year would both use the accrual and real earnings management behaviors. (2)The empirical results can draw a conclusion that the effect of accrual earnings management on enterprise financial performance has a decreasing trend at current year of listing of companies through comparing the effects of different earnings managements on the current and future corporate financial performance. However, the effect of real earnings management on corporate financial performance has an increasing trend as prolonging of time to market and there is negative correlation between them. Thus, in this paper, the reasons why financial performance declined are explained after companies listed on GEM from the perspective of accrual and real earnings management. (3)However, there is no empirical verification that the real earnings management when companies were listed on GEM and enterprise value were negative correlation.