Executives Characteristics,Fair Value Measurement Of The Investment Real Estate And Earnings Management

On February 15,2006,the ministry of finance issued accounting standards for enterprises No.3 the investment real estate.The new guidelines require enterprises separately listed investment real estate and allow enterprises to adopt the fair value pattern.Compared with the active securities trading market,as emerging market in our country,the transparency of the open transaction is poor,market information asymmetry phenomenon is more serious in our real estate trade market.Under the current market environment,many enterprises use its own internal valuation method for the investment real estate fair value valuation.And their information disclosure about valuation is not complete.Even the confirmation of the fair value by external intermediary structure evaluation,because the lack of the asset appraisal institution and the corresponding high levels of asset appraisal in our country,and the evaluation and accounting personnel quality is that the good and bad are intermingled,therefore,the reliability of fair value is hard to be guaranteed.These provide plenty of room for the enterprise's management to do surplus manipulation.From the upper echelon theory,the organization's strategic choice and performance depends in part on the executive team background characteristics.Executives is decision makers of the enterprise strategic and the executor of the specific plan,managers tend to report accounting information which is beneficial to its own interests,the economic and psychological needs and personal characteristics will inevitably affect the accounting policy choice.Domestic and foreign scholars generally agree that executives had important effect on the company's operating performance,the quality of the surplus,and the accounting policy choice.This provides the basis for us to study the choice of the investment real estate accounting measurement model from the perspective of TMT background characteristics.As the main implementation subject of the earnings management,company executives background characteristics has become the important aspects of the research to the influential factors of earnings management.This paper empirically test the effects of TMT background characteristics on real earnings management and accrual earnings management of listed companies;the choice of the investment real estate fair value measurement whether has higher degree of earnings management;TMT background characteristics whether affect the subsequent measurement model of investment real estate or not.Empirical results found that:first,the higher the proportion of women in senior management team and the higher the average age,the lower the degree of its accrued earnings management and real earnings management.Second,for the listed company using the investment real estate fair value measurement,its accrual earnings management degree is higher than the listed company using the investment real estate cost measurement.Further,large average age of the listed company's TMTs in a certain degree can inhibit the accrual of earnings management through the investment real estate fair value measurement.Finally,the higher the proportion of women in senior management team,the lower the average age,the lower the average education background,the greater the possibility to use the fair value measurement.From the perspective of the characteristics of the senior management team,we study the investment real estate fair value measurement model selection and earnings management which not only can enrich literature research related to the earnings management,the fair value measurement and executive team background features,but also has certain reference significance for decision-making for investors,regulators and policy makers in terms of discerning and strengthening the prevention of earnings management.