The Research On Behavior Choice Of Earnings Management

As an important subject of accounting research,“Earnings Management” has attracted much attention.The research of overseas and domestic scholars includes not only definition and measurement of mode of earnings management,but also the exploration to the influence of earnings management on the company,and various factors may affect the earnings management.Scholars generally agree that high earnings quality can provide investors with high quality surplus information of listed companies,that help investors to more accurately predict the company's future performance,so as to make the right investment decisions.Whether earnings management is directly influence or through some medium to achieve the effect remains to be further research,at the same time,different ways of earnings management may have different performance in the process of impact.At the same time,the earnings management of listed companies and the audit quality of certified public accountants have become a major concern in the domestic and foreign securities markets.The characteristics of three securities market in China are different,although the fusion and mutual infiltration gradually,but they still have different performance and management mode because of their policies and practices.Therefore,the research on the issue of ashare and h-share IPO is helpful to understand the influence of the company's shape and audit quality on the earnings management in different securities market environment.Based on the above background and analysis,the study in the first part of this article will discuss how the size of the company's earnings management affect investors heterogeneous beliefs of the value of the company,in turn,affects the company's future stock returns.Based on the differences between accrued earnings management and real earnings management,this paper may make three assumptions about the different results.First of all,it is found that the size of the company accrued earnings management can be used to handling accrued profit as the proxy variable,and can be handling accrued profits have a larger growth,investors heterogeneous beliefs level for the value of the company will get higher.Second,when the discretionary accruals increase and it case the investor's heterogeneous beliefs increase,the future stock returns will decrease after the earnings announcement.Moreover,the effects of discretionary accruals and investor heterogeneous beliefs on future stock returns are different in different quantile.That is to say,investor belief is an intermediate factor,discretionary accruals can affect the future stock returns by influencing investor beliefs,that is,accruals-management,investor heterogeneous beliefs and stock future earnings have a direct and significant impact relationship.In contrast,the real earnings management of the company has a relatively slow impact on stock returns,be displayed in the next one years,and there is no need for investor heterogeneous beliefs as an intermediary quantity to influence.The second part of this paper is mainly about the relationship between audit quality and earnings management in initial public offerings of Listed Companies in china.In order to reveal whether audit CPA firms can constrain the process of IPO earnings management motives,as well as high-quality professional audit whether be used as the effective evidence of that earnings management was less used during the IPO process.By examining the impact of audit quality on earnings management,the revised Jones model used to analyze the data and draw conclusions.On this basis,comparing the mainland and HK markets,the paper discusses the difference of IPO audit quality to earnings management in different market environment and the reasons behind it.Finally,this paper points out the inadequacies of the study and gives the future research prospects.