Research On The Influence Of Equity Incentive On Earnings Management Of Listed Companies In GEM

Compared with Western countries,equity incentives have not developed in China for a long time.Even today,China's equity incentive system is still not perfect.Equity incentives aim to mobilize the enthusiasm of executives,and promote the interests of managers and owners.Equity incentives are generally considered to play an important role in the market economy.However,in China,where the initial stage of equity incentives is implemented,equity incentives sometimes fail to achieve positive effects due to information asymmetry,incomplete guidelines,and rational behavioral factors in corporate governance.One of the negative consequences is that corporate managers make surpluses.management.This paper first reviews the relevant research literatures on equity incentives and earnings management,and sorts out the theoretical basis related to equity incentives and earnings management.Secondly,this paper summarizes the current situation of equity incentives for listed companies on the GEM.On this basis,this paper selects all the companies listed on GEM as samples in 2009-2017,and empirically tests the following questions:(1)Whether the GEM listed companies adopting equity incentives will implement real surplus before and after the announcement of the equity incentive plan(2)Whether the degree of adjustment of profits of the management of listed companies on the GEM is affected by the proportion of equity incentives;(3)Whether the degree of earnings management of listed companies on the GEM is affected by the duration of equity incentives;(4)Entrepreneurship Whether there is a correlation between the degree of earnings management of listed companies and the equity incentive model adopted by listed companies within a certain period of time.Through empirical research,it is found that the earnings management of GEM-listed enterprises with equity incentives is higher than that of enterprises that do not implement equity incentives;the enterprises that implement equity incentives choose the two modes of stock options and restricted stocks,and the equity incentive model It has a certain impact on the degree of earnings management.The level of earnings management when using the restricted stock model is higher than that of the equity incentive model;the shorter the length of equity incentives,the higher the degree of corporate earnings management;the greater the degree of equity incentives,the management manages earnings management.The higher the degree;in addition,this paper introduces other control variables such as company size,growth,total asset-liability ratio,and concentration of ownership,and makes equity incentives and earnings management by performing multiple regression analysis while controlling other variables.The results of the study are more reliable.The innovations of this paper mainly have the following two aspects:First,when studying the relationship between equity incentives and earnings management,this paper increases the equity incentive model.At the same time,the degree of corporate earnings management before and after the announcement of the equity incentive plan was considered.Second,this paper chooses the real earnings management model to examine the impact of equity incentives.As the domestic securities laws and other laws become more standardized,the space for enterprise accrued earnings management is getting smaller and smaller,and more enterprises are turned into real earnings management.