The Analysis Of Earnings Management During The ESOP’s Implement In Gosuncn Group

In June 2014,the Commission published the < Chinese guidance on listed companies on the ESOP pilot >,provides a formal specification and system security of ESOP implementation standards,such as the source of funds,the stock sources made clear,for China’s listed companies.In recent years,with a series of policies and regulations issued in China,ESOP opened the door to listed companies,more and more domestic listed companies start to implement ESOP.ESOP is a long-term performance incentive plan,which is a major innovation after the stock option incentive and incentive mechanism in China,it fills the lack of loopholes the inspiration of Chinese employees.However,the ESOP in our country’s development process is not smooth,experienced the failure of the development in 80 s and 90 s in nineteenth century.After the restart time is short,compared to the the western developed countries,a late start,do not know much.At present,the research of ESOP in academic circles mainly focus on the overall level,the empirical analysis for announcement effect etc.,The ESOP case studies are less and less.Therefore,this paper based on the example of Gosuncn Group’s ESOP,analysis the change of the degree of earnings management of ESOP in the implementation process,and evaluate whether exist management control earnings management of listed companies to obtain excess returns in the process.Provide guidance and reference related to ESOP and restrain earnings management for the relevant departments and the listed companies.This paper uses the combined method of normative research and case analysis.In the normative research part,review and summarize the relevant literature at home and abroad,the motivation of the employee stock ownership plan,the effect and the motivation and methods of earnings management are summarized.In the part of case analysis,based on the characteristics and reasons of Gosuncn’s ESOP,combine with analyzing financial data and charts and by measuring the degree of earnings management of two key time point of ESOP to analysis the method of earnings management that company implementation,and then summarize the implementation effect of earnings management on ESOP.Finally,through the above analysis the conclusions of the research,the case analysis of mining the common sense,the relevant departments and the suppression of earnings of listed companies to implement ESOP and Management put forward some constructive suggestions.The main contribution of this paper lies in:(1)Combined with the real case of the securities market of our country listed companies analyze the main motivation of the ESOP’s implementation,characteristics and effect;(2)Using modified Jones model to reveal whether the ESOP exists to manipulate earnings management company case implementation,reveals the self-interested behavior of employee stock ownership plan management layer;(3)Calculate the long term market performance(BHAR)after the Gosuncn’s ESOP and then analyze and summarize the implementation effect of earnings management on the Gosuncn’s ESOP.This paper is divided into five chapters.The first chapter is the preface.This chapter briefly introduces the research background and significance,the research status at home and abroad,the ideas and methods of this article,and presents the basic framework of this article.The second chapter is the summary of the theory of ESOP and earnings management.This paper introduces the motive and effect of ESOP,and analyzes the means of earnings management,and finally discusses the three theories of earnings management involved.The third chapter is the Gosuncn Group to implement ESOP case introduction.Based on the basic situation and the governance structure of Gosuncn Group.A detailed introduction of the Gosuncn Group’s ESOP background and characteristics of the specific content,and analysis of motivation of Gosuncn Group’s ESOP.The fourth chapter is about case analysis.Based on the characteristics and reasons of Gosuncn’s ESOP,combine with analyzing financial data and charts and by measuring the degree of earnings management of two key time point of ESOP to analysis the method of earnings management that company implementation,and then summarize the implementation effect of earnings management on ESOP.The fifth chapter is the conclusions and policy recommendations.This chapter draws the conclusion through the above analysis,and drawing on the relevant departments and supervision of listed companies and provide some policy suggestions about implementation of ESOP and restrain earnings management.