A Study On Earnings Management And The Listed Corporate Income Tax Burden

Accounting profits are regarded as an important reference index in the enterprise accounting information,and attract intense attention for a long time by the external stakeholders.Enterprises accounting profit not only affect the allocation of resources,but also affect the sustainable development of the future to a certain extent,like debt covenant,ST.Earnings management brings endless benefits to the enterprise,and it exists everywhere.But,in the process of manipulation of earnings management will face the cost of the tax,especially when the enterprises increase corporate profits,income tax will increase accordingly.This paper is to study enterprise operation profit,how to weigh the financial reporting costs and tax costs.Or enterprise surplus management of every control unit,how many taxes will be evaded.After research and analysis of theory,I found that when there are upward earnings management purposes,the enterprises have the incentive to manipulate the taxable profit of the project,such profits increase while the income tax did not improve.When there are downward earnings management purposes,although the enterprise surplus management smooth down part of the profits,But if by reducing the taxable profit of the non-taxable project,the corporate actual taxes will not reduce.Therefore in this research on the relationship between earnings management and income tax,I introduced the maneuverability of non-taxable project profit to construct the empirical model better.As the small and medium-sized enterprise board and gem listed company belong to small and medium-sized enterprises,Most of them are growing high,but their supervision mechanism and listed conditions is different.I choose this two kind of listed corporation as sample,and found the following conclusions:1)Overall,the greater the degree of earnings management of listed companies,corporate management control on non-taxable projects are more likely to make more profit.Each ?1 of earnings management of listed companies profits can be only 1.1 to 1.6 points to evade tax cost;2)The higher the tax rate,the more tax costs are evaded;3)Afler classify the earnings management into upward earnings management and downward earnings management,when the small and medium-sized enterprise board companies have the goal to upward earnings management,to achieve profit targets,the companies didn't circumvent the enterprise income tax under the profit manipulation.When the goal is opposite,the enterprises will reduce tax burden by reducing the profits of taxable projects.However,for the GEM Listed companies,as the goal is upward,they will also avoid the enterprise income tax;but when the goal is downward,the tax burden will increase;4)Small and medium-sized enterprise board listed companies prefer to follow the real earnings management way to avoid the enterprise income tax cost,while the gem,on the other hand.