Research On The Influence Of The C Hange Of Accounting Estimate On Earnings Management

The behavior of the earning management is common among the Chinese listed companies when going public,rationing stocks,and making up the deficits and getting surpluses.This behavior has enlarged the information asymmetry of investors and creditors,and thus obstructed the orderly development of our stock market.During the process of the earning management,the way of accounting estimate alteration is more subjective and is easier to be controlled by the corporations compared to the limitations on related party transactions and debt restructuring,so it has gradually become the main measure of the earning management for the Chinese listed companies.Therefore,in this paper we mainly study from three aspects.One is the impact of accounting estimate alteration of listed companies on earning management.Another is the differentiated impact of accounting estimate alteration on earning management by listed companies in various industries.The third is the differentiated impact that various projects in accounting estimate alteration have on the earning management of listed companies.This paper uses the sample of 1232 companies listed on A share market whose annual reports(2007-2016)disclosed the accounting estimate alterations,and adopts the basic level analysis and empirical research to make a depth research.We first arrange related documents and set up the theoretical principle of this passage.Then,starting with an analysis of basic level of accounting estimate alteration,we carry out a detailed analysis of the change project and the impact on the company's operating value so as to present research hypothesis.Finally,we use the empirical analysis on Jones CF Model and regression model to verify the assumptions of this passage,and the conclusions are as follow:First,there is an obvious positive correlation between the accounting estimate alteration of listed companies and the level of earning management;the impact of earning management on listed companies that have not experienced accounting estimate alteration is higher.Second,among listed companies that went through accounting estimate alteration,the level of earning management in the manufacturing industry is higher than that of other industries.Third,the effects of accounting estimate alteration for different projects have unequal effects on earning management.Companies that adopt fixed asset depreciation alteration have higher levels of earning management than those of other companies which change projects.According to this,in order to reduce the behavior of listed companies on misuse of accounting estimate alteration for earning management,managers need to implement comprehensive treatments on aspects of accounting standards,accounting estimates subjects,and accounting information supervision.The conclusion of the paper can be theoretically proposed for reducing the behavior of listed companies' misuse of accounting estimate alteration for the earning management.