An Empirical Study On The Impact Of Financial Independent Directors On Earnings Management

Earnings management is an important issue that is closely related to investor protection and accounting standards.It has become an important research topic in accounting and financial and economic fields.The current research on earnings management is focused on accruals on the adjustment of earnings figures by means of accounting.However,under the high pressure that the financial scandals of listed companies are constantly being exposed,the accounting standards are constantly improved and revised,which makes the accounting elastic space smaller.With the increasingly severe external supervision,enterprises gradually shift from accrual earnings management to achieve its earnings management objectives.The surplus is an important information of the capital market.If it is distorted by the bad motive of the manager,it will mislead the decision of the user,leading to the inefficient allocation of capital market resources and thus the healthy and orderly development of the capital market.So,how to curb earnings management,improve the quality of accounting information,but also it is an important task in today's accounting field.On the basis of absorbing and drawing on the predecessors' research,this paper chooses main board listed companies of China A-share from 2011 to 2015,and examines earnings management from the perspective of financial independent directors' governance.The results show that there is a significant negative correlation between financial independent directors and accrued earnings management,which is significantly positively correlated with real earnings management.The rational explanation of this result is that,compared with accrual projects,the construction of real trading activities has a greater degree of concealment,under the supervision of the independent financial directors to force the manager to the real earnings management.In the regression analysis of the relationship between personal characteristics and accrual earnings management,it finds that the salary,educational level,age and part-time of financial independent directors are negatively correlated with accrued earnings management at different significant levels.According to the research conclusion,the following suggestions are put forward: pay attention to the influence of real earnings management,strengthen the supervision of real earnings management;clearly locate the functions of financial independent directors;improve the employment mechanism of financial independent directors;to ensure the professionalism of financial independent directors;improve the incentive mechanism of financial independent directors;improve the financial independent directors of the supervision mechanism;to promote the independent directors of professional construction.The paper further enriches the research on the performance of independent directors,which will help regulators and practitioners to enhance the understanding of specific earnings management of listed companies and to improve of supervision mechanism to earnings management and expand the theory of independent directors and earnings management research;for the independent director system to improve and reform provides useful empirical evidence.The innovation of this paper is to emphasize and refine the financial status of independent directors and their personal characteristics,and to expand the research perspective of the impact of financial independent directors on earnings management.