A Study On Relationship Between Ownership Structure And Earning Management In Chinese GEM Listed Companies

As an important component of enterprise accounting information, accounting earnings information is an important basis for stakeholders to make decisions. But in recent years,corporate earnings management behavior has occurred frequently. This will inevitably affect the true and reliable level of accounting earnings information, therefore, the quality of earnings has attracted more and more attention. A major influencing factors of earnings quality is the corporate governance. However, China's current capital market is not in an effective state, and external governance cannot effectively play its role. So shareholders will tend to influence earnings information through internal governance, and then the ownership structure will affect earnings quality. So this paper is based on this theme. At present, most of the researches remain in the A share market, and the research on the GEM sector is rather limited. Therefore, this paper chooses the listed companies of GEM as the research object.First of all, the article points out the background and significance of the research theme,and clears the research content and research framework, and points out the innovation of this thesis; secondly, this paper summarizes the classification of the existing related research about ownership structure and earnings quality, and summarizes the shortcomings of present research in the research direction of this paper; thirdly, in this paper, the definition of ownership structure, the definition of earnings management, the classification of earnings management, the motivation of earnings management, the definition of earnings quality, the relationship between earnings quality and earnings management are expounded and summarized; then, the ownership structure of GEM listed companies is divided into equity concentration, equity balance degree,equity properties (including institutional investors shareholding, managerial ownership) and equity circulation, and the influence of them on earnings quality is investigated and relevant hypotheses are put forward; on this basis, this paper takes the data from the GEM listed companies in China from 2011 to 2015 as the sample, and empirically analyzes the influence of ownership structure on earnings quality. The study finds that: (1) The concentration of shares is positively related to the activity of accruals and the earnings of real activities, which is posed as U,(2) The balance of ownership has no significant influence on the quality of earnings,(3) The share of institutional investors is negatively related to the true earnings quality, but there is no significant impact on the quality of earnings,(4) Managerial ownership ratio is negatively related to accruals earnings quality, but has no significant influence on earnings quality,(5)Equity liquidity is positively related to accruals earnings quality, but has no significant impact on the true earnings quality; at last, in view of the research conclusion, this paper puts forward some reasonable suggestions on how to improve the earnings quality of China's GEM companies.