The Influence Of The Founder's Specific Assets On Earnings Management

In recent years,with the continuous development of China's economy and the deepening of the reform,the scale of China's enterprises and the number is growing rapidly in the decades of development.In the development of several decades,a lot of private enterprises have developed rapidly,and they have come to the fore in many enterprises and are listed on the domestic or foreign stock markets.However,founder of many private enterprises in China after several rounds of financing,the shares being diluted,the identity change of large shareholders as investors,the control does not have the founder of enterprises,but many of them did not retire but continue to serve as CEO or leadership position,which makes the control and management right in to a certain extent is separated.However,the founder has specific assets of founder,capability,personality,professional experience and so on.Once the founder's special assets have shrunk,the founder may take self-protection measures such as earnings management to protect his own interests.In this paper,based on the research of NVC company founder of specific assets and earnings management level of data and information,to explore the relationship of the founder of special assets and earnings management.Case study results show that the founder of special assets in higher level,the company's earnings management will show compared to the industry average of more normal accruals earnings management level,and the founder of specific assets will enable the company to improve the level of earnings management in the way when there is a downward trend.When the founder's specific assets are at a high level,the real earnings management of the enterprises will be smaller.But if the founders' special assets have a downward trend,the real earnings management of enterprises will increase significantly,and the founder will use a larger degree of positive real earnings management.Therefore,it is suggested that investors and government departments pay more attention to the change of earnings management of the company when the founders' special assets fall.