Equity Incentive Big Shareholder Control And Earning Management

Equity incentive,by giving managers shares residual income,can mediate the contradiction between the managers and the owners,balancing the interests of the company with themselves to achieve the win-win situation.But in practice,there are some problems.Equity incentive was introduced into our country in the 1990s,and then obtained rapid development.More and more enterprises have put out their equity incentive plans.In this paper,we treat all the listed companies in China's A-share market who had implemented equity incentive plans as the research object,after they put out equity incentive plan announcements,whether is there the existence of earnings management behavior,and whether is this kind of behavior caused by equity incentive?This paper focuses on the specific elements of the equity incentive plan to study their impact on earnings management behavior.Moreover,this paper observes the impact of the big shareholder control on earnings management.And at the end,this paper gets the following main conclusions:First,there was earnings management after the equity incentive plans were put out.Second,the degree of equity incentive showed significant positive correlation with earnings management.Third,the validity of incentive showed significant negative correlation relationship with the degree of earnings management.Fourth,there were different influences on earnings management,if the incentive modes were different.Fifth,the big shareholder control did not inhibit earnings management behavior of management,making the equity incentive effect unenhanced.The contribution of this paper is that by choosing all the companies in the selection of the A-share market who had implemented equity incentive plans between 2011 and 2014,this paper updates research data,can make contributions to changing our country's corporate governance structure and improving the quality of accounting information of listed companies.