Study On The Relation Between Real Earnings Management And Future Firm Performance

With the development of securities market in our country,a lot of earnings management of listed companies is more and more prevalent,the problem of earnings management is becoming more and more attention of the international scholars.But our country's laws and regulations and accounting standards system is not sound enough,corporate governance structure has its drawbacks,certified public accountant auditing supervision and lack of strength,therefore,the earnings management of listed companies has diversity and complexity,and there are many problems,for the healthy development of securities market in China has brought great negative impact.Earnings management refers to the enterprises in the use of certain accounting methods and means,to realize own effectiveness maximization and the maximization of enterprise value and choose accounting behavior,the essence of which is purposeful intervention or affect financial reporting,and affect the interests of the stakeholders and decision making.Earnings Management mainly has two ways,one is by means of accounting accounting estimates(or change in accounting policy to manipulate the surplus,such as reducing the provision for bad debt provision or change assets depreciation method,etc.,due to this operation will reflect on the accrued items change,therefore,also known as accrued Earnings Management(Accrual the way Management),it usually only change the distribution of the surplus every period and will not affect the overall enterprise surplus,also won't affect the cash flow;Second,by arranging for Real economic transactions to manipulate Earnings,such as the sale of assets,cut spending on research and development,accelerate production,discount sales,etc.,so called Real Earnings Management(Real way Management),it not only change the phase of surplus distribution,also affect the level of overall surplus and cash flow.Because the real earnings management is through the manipulation of the actual business activities,it will lead to the operation of the enterprise deviate from the optimal will weaken the competitive power of enterprise,in the long term than accrued items adjustment,more damage the long-term interests of investors.Based in China's unique institutional background,on the basis of the existing relevant research results at home and abroad for reference,from the perspective of internal control and management incentives of Chinese listed companies the economic consequences of realearnings management behavior.First analysis of the basic situation of the real earnings management of listed companies in China can be more clearly grasp the overall situation of the real earnings management of listed companies,China can also reflects the current institutional environment by earnings management of listed companies are faced with the external regulatory pressure.Secondly,this paper studies the economic consequences of real earnings management behavior.In theory,the real earnings management due to the material consumption enterprise economic resources,will have a negative impact on the future management,will lead to the decline in the company's long-term performance,empirical evidence to support this theory.In this paper,from two aspects of internal control and management incentive to investigate real earnings management regulation effect of the impact on the company's future performance.At the same time,this paper USES the a-share non-financial listed companies from 2010 to 2015 data to empirically validate the theoretical analysis.Based on this,the following research conclusions.(1)Under the condition of all other things being equal,real earnings management is negatively related to the company's future performance.(2)other conditions the same situation,the enterprise control to strengthen the real earnings management the damage to the enterprise future performance.(3)other conditions the same situation,weakened the real earnings management to enterprise management incentive the negative impact of future performance.