Non Recueeing Gains And Losses And Classification Shifting Earnings Management Of Listeed Companies

Earnings management is an ancient and full of vitality topic of accounting research,which from accrued earnings management activities to real earnings management,and then to the relatively new type of classification shifting earnings management.Classification shifting earnings management means under the premise of not changing the company net profit,to classify the recurring project and non-recurring project by mistake,such as classifying companies operating cost to non-business expenses,and classifying the non-operating income to revenue,so as to realize the purpose of exaggerated enterprise core earnings.In this paper,using the quarterly financial data of Chinese a-share listed companies from 2011 to 2015 as research samples,to find relevant evidence of management using non-recurring gains and loss classification to shift earnings management.This paper estimates the company's unexpected core surplus according to the core of the surplus forecast model which put forward by Fan et al.(2010),and then inspects the relationship between unexpected surplus and non-operating income,and finally gets the relevant evidence of the existence that the management using non-recurring gains and losses classification to shift earnings management.At the same time,it further investigates the motivation that the management using non-recurring gains and losses classified shifting to control surplus to get the target threshold.Compared with the previous research results,the contribution of this paper mainly are the following two points:first,it is the first time using quarterly financial data to investigate the management shifts surplus management by using classification of non-recurring gains and losses,which is relatively new research topic in financial research in China;second,it finds the evidence that the management in the fourth quarter is more likely shifting earnings management in classification by using the non-business cost and non-business income at the same time than in the first three quarters,previously,Zhang Ziyu,tian-xi zhang(2012)only found the evidence that there are some kind of special small profit companies classify part of the"core cost"in the income statement to "non-operating expenditures".