The Reaearch Of Relationship Between Earnings Management And Co-working Time Of The Chairman And CEO

Since earnings management appeared in the public,it has been the focus of the accounting theory and accounting practice.As the key factor of earnings management,the top management team has been pursued by scholars both at home and abroad,and they try to find out the characteristics of earnings management,the crux of the problem and the solution from the perspective of heterogeneity.As the core characters of top management team,the research of chairman and CEO in this area is also quite rich.However,the research about whether their co-working time and culture of value will have an effect on earnings management and how to exert an influence is rare.This paper attempts to answer this question and make an explanation.It is not only a useful supplement to the research of earnings management,but also provides a reference for the allocation of human resources.It is also the significance of this study.From the perspective of co-working time of the chairman and CEO,this paper is to study the relationship between their co-working time and earnings management.Firstly,literature review is conducted from two aspects of executive tenure and earnings management,corporate governance and earnings management.Secondly,this paper mainly analyses the effect and mechanism about earnings management and co-working time of the chairman and CEO.Further it is taking into account the CEO power and ownership nature.Finally,make assumptions and build a regression model.Through testing Shenzhen and Shanghai A�share listed companies during 2010�2015,this paper is to explore how the co-working time of the chairman and CEO affects earnings management and how the CEO power and enterprise nature affects their relationship.After testing Shenzhen and Shanghai A�share listed companies during 2010-2015,we got co-working time of the chairman and CEO had a negative relationship with earnings management.The mutual integration,tacit cooperation,the pursuit of their own and the long-term development of the enterprise between the chairman and CEO in the long-term work phase may be worked and then they reduce the earnings management.After considering CEO power,we find the negative relationship is weaker.We think when CEO own large power,CEO may have a greater impact on participation in decision-making.It will increase earnings management opportunities for their own benefit from causing the earnings management behavior.Furthermore,by differentiating the ownership nature,it is found that the negative relationship is lower in the state owned enterprises.It may be due to the diversified evaluation mechanism.Because the chairman and CEO are more for internal promotion and appointment,they are affected by organization culture deeper and have a higher understanding.They lay more emphasis on the long-term development of their own and enterprises.Finally,based on the conclusions above,the following suggestions are put forward in this paper:First,extend the co-working time of the chairman and CEO properly;Second,strengthen the corporate governance mechanism of listed companies;Third,establish and improve the professional manager market;Last,improve CEO evaluation mechanism.