Analysis Of The Mixed Equity Structure And The Earnings Management Through Real Activities Manipulation

As earnings management is always popular among different companies,and it has tremendous influence on stakeholders,it has become one of the hot topic to the public and academia.State-owned enterprises as the companies that contribute most to the economic growth of our country,are easy to manipulate accounting surplus due to their strong administrative background.At present,most of the research on earnings management mainly focused on the manipulation of accrual items,activities between mixed equity structure and real activities earnings management research has seldom been reported.Today we are in the important stage of comprehensively deepening reform,studying mixed equity structure and finding the appropriate equity proportion that most help to curb earnings management,has a great significance to improve corporate governance structure and standardize the company’s financial information.This paper studies the relationship of the concentration degree,diversity,depth and balance of the mixed equity structure with the real activity-based earnings management of state-owned companies.The result of research shows that the mixed equity concentration is positively related to real activity-based earnings management,the mixed equity diversity is negatively related to real activity-based earnings management,the mixed equity depth has a U-shaped relationship with real activity-based earnings management,the mixed equity balance is negatively related to real activity-based earnings management,.According to the analysis of present situation and the related data,the conclusions of this paper has some inspiration to standard company’s accounting behavior,inhibit real activity-based earnings management level,improve the reliability and authenticity of the accounting information of the company.