Studies On The Relationship Between The Listed Companies' Equity Incentive And Earnings Management

After the share merger reform in 2006,C hina promulgated a series of laws and regulations on equity incentive.More and more C hinese listed companies adopt the way of equity incentive to strengthen the enterprise management.The equity incentive system mainly regards stock as an incentive measure.But the management in order to obtain more stock incentives,they may use their own powers adjust the earnings,and damage the interests of shareholders.Therefore,the study on the relationship between listed companies' equity incentive and earnings management have a certain theoretical significance and practical significance.At the beginning,this paper introduces the research background and significance,the research trends of the scholars at home and abroad are discussed,and the main contents and research methods are proposed.From the aspects of stock structure theory,principal-agent theory,contract theory and others,this paper analyzes the theoretical foundation and related concepts of equity incentive and earnings management,and then analyzes the status quo of the implementation of the equity incentive and earnings management from the aspects of listed companies in China.The most important part of this paper is the empirical part.This paper analyzes the impact of equity incentive on earnings management from four aspects.The four aspects are the time of equity incentive,the mode of equity incentive,the duration of equity incentive and the degree of equity incentive.In the process of analysis,four control variables are introduced.The relationship between equity incentive and earnings management is analyzed by descriptive analysis,comparative analysis,correlation analysis and multiple regression analysis.The result shows that the incentive time,the incentive mode,the incentive duration and the incentive degree affect the degree of earnings management of the listed company in a certain extent.So the equity incentive affects the earnings management of the listed company from different aspects.Based on the empirical conclusions,this paper puts forward some policy suggestions for the listed companies,which can make the company implement the equity incentive policy better and restrain the earnings management behavior.