The Impact Of Equity Incentive On Earnings Management Of Listed Companies In GEM

As a long-term incentive mechanism,equity incentive has been paid more and more attention in ourcountry since it was first implemented in 2006,and is developing rapidly,especially in the second board,emerging market.Most of the listed companies link up the pricing exerciseofthe subject matter with company performance,at the same time,the enterprise accounting earnings is set as an important criterion for judging the performance of the enterprise.Thus,executives can achieve the purpose of obtaining more compensation through earnings management,which is based on the equity incentive.This paper firstly describes the background and significance of the topic,reviews the domestic and foreign research on the equity incentive and earnings management,and introduces the definition and theoretical basis of this paper.Secondly,in order to better understand the relationship of equity incentive and earnings managementbetween listed companies in GEM,this paper briefly analyzes the current situation and existing problems of equity incentive and earnings management in GEM.Finally,this paper selects thelisted companies whichhas announced equity incentive plans at the first time in GEM from 2013 to 2015 years as a sample,then uses reasonableeconometric model of earnings management and Stata and SPSS software for empirical test to explore the different ways of earnings management manipulation behaviorin the stock market incentive.The results show that: in the first year of the first announcement of the equity incentive plan,the listed companies in GEM have obvious negative accruals earnings management;There is no significant relationship between the intensity of equity incentive and accruals earnings management,but the intensity of equity incentiveplays positive correlation with real earnings management;Different equity incentive model will affect the level of accruals earnings management,and the level of accrual earnings management in the company with mixed incentive model will be higher than that in the company with a single incentive model;With the size of the company and the growth of executive compensation,executives will tend to adopt accrual earnings management,andreduce the real earnings management behavior;The appointment of independent directors can supervise and control real earnings management behaviors to a certain extent.