Research On The Earnings Management Of The Quarterly Report Of The Growth Enterprise Company From The Perspective Of Investor Protection

The 4th quarter of 2014,as the national "barometer" of economy,stock market of china went to a new stage from the long bear market.The number of investors vastly increase,but still the lack of the environment and ability to discern accounting information have drove the majority of investors to blindly speculating in the best companies' prices,resulting to a wide range of losses by the middle of 2015.In order to help small and medium investors to invest and strengthen the protection of small and medium investors,this paper,based on statistical analysis of quarterly ROE distribution which is complied by characteristics of the statements of listed companies of the GEM,found that there are phenomenon like‘bathing',' loss into profit',“inflated profit “.And then,with my own understanding on the GEM company,I manged to further improve the Jones model,and then conducted a regression analysis to test the GEM company's abnormal earnings management behavior and finally gave an interpretation that revenue does not have the same coefficient as last year's income,but this is true in the annual report.The quarterly data study found that 1th quarterly report tends to be based on revenue data for the previous year,and the evidence for this is that quarter's earnings coefficient is possible to show a negative sign whereas last year's revenue was positive,and it was easy to occur in the first quarter.And with the change of time,the impact of income and income of last year form a cross-change,and this year's income symbol finally return to positive,the previous year's income symbol negative.To further research,we defined the definition of the anticipation of the cow,bear and monkey,and the conclusion that the degree of deviation of the bull market surplus is significantly increased is based on the degree of deviation from the residual data of these different intervals.And then through the depreciation data we found that the original value of fixed assets last year did not just reflect the depreciation of the situation,in extreme cases can represent the growth of profits,and the strange changes of 2015 in the coefficient may come from a real earning management.Next,combined with the empirical study above,it is concluded thatquarterly statements are more credible in the absence of motivations,but if there are motivations,they will become quarterly untrustworthy conclusions.Finally,in combination with the theory of investor protection,it is necessary to establish the quarterly report trust system,disclose the illegal records of financial personnel,formulate the indicators to measure the historical credibility of the report for reference,exert quarterly random audition,punishment and reward for anonymous report of crime,Pouring cold water system,supporting the establishment of small and medium shareholders information exchange system,shareholder responsibility,securities company service reform,Trial system of getting out the GEM.