| As the Enron financial scandal and domestic and international numerous financial fraud events,corporate governance issues have arisen widely attention,the main characteristics of modern company system is the separation of ownership and management of enterprises,shareholders and the general manager establish a principal-agent relationship by way of a contract.Shareholders as the owner of the enterprise own the distribution of remaining assets in a company,its purpose is to maximize shareholder wealth and enterprise value,and CEO directly involved in the day-to-day business activities of the enterprise,as an agent to achieve compensation contracts,the goal is to improve the company's business performance in order to obtain a higher salary and prestige.Change in the CEO is sensitive period of Earings management,especially the CEOcan predict the change beforehand,earnings management will be conducted to seek the maximum pay and salary during the reign.In this paper,I collect Shanghai and Shenzhen Share markets in 2007-2014 retired enterprise and for sample selection I chose in same industry similar enterprise assets in the same year as the paired samples,to empirically analyze whether there is any change of in the previous year by acruall basis earings management and real activities earnings management.Study found that the CEO can be expected to change.Specifically,the ACFO was significantly lower than before the CEO retention enterprise,indicating that the CEO in predictable year before retirement conducr real earnings management activities by selling method.CEO retired former years' APROD and DA is higher than the CEO stay enterprise but are not very significant,explaining that CEO doesn't have significant earnings management through the excessively production control before retirement.Finally,put forward feasible suggestions and points out the insufficient of this paper and the future research direction. |
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