Research On The Influence Of CEO Turnover On Earnings Management

In China, about 15% of the Listed companies change CEO each year, and the listed companies use the instability of CEO turnover to make earnings management have reached serious proportions, it was regarded as “an urgent problem need to study and solve”. Actually, Moore in the study found, the newly appointed CEO will manage the earning negative by some means, and then attribute the company's poor performance toward last CEO. Subsequently, the academic community began to pay attention to the relationship between CEO change and earnings management. But at present almost all the research on the CEO change and earnings management focuses on the accrual earnings management in the earnings management. With increasingly improve the standards and regulations and all range of increasingly stringent regulatory system, making use of the accrual earnings management project for the manipulation of the data fraud, statements whitewash and so on, the elastic space more and more narrow, more and more companies began to use real earnings management activities to achieve the purpose of financial control. Therefore, it is very necessary to conduct in-depth research on the relationship between CEO change and earnings management, especially the real activity earnings management of listing Corporation.Based on the principal-agent theory, asymmetric information theory, contract theory and a detailed review of the relevant literatures of previous research at home and abroad, analyzes the relationship between CEO change and earnings management, we selects the 2009-2014 listing Corporation which have CEO change in Shanghai and Shenzhen A shares as the research object, through descriptive statistical analysis model and regression analysis, draw the following conclusions: the new CEO in office which not familiar with in the company's business, and the interpersonal network is not perfect and other circumstances, they are more inclined to adopt accruals earnings management, after the change in the 1-2 fiscal year, CEO, through a for some time, learning and understanding, familiar with the business, improve their ability, interpersonal relationship is also more perfect, while taking into account system factor, environmental factor, they not only use the accrual of earnings management, but also to take control of the real activities to manage earnings.