Employee Stock Ownership Plan?Management Power And Earnings Management

In 2014,after the CSRC promulgated the “ Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Plan for Listed Companies”,the practice of the employee stock ownership plan in China has spread quickly.In August 2016,after the three ministries issued the "Opinions on the pilot implementation of employee stock ownership in state-owned mixed-ownership enterprises",it further regulated the behavior of employee stock ownership plans.The effective incentives of the employee stock ownership plan not only can help the company to retain the important talents needed,but also provide corresponding rewards for the hard-working employees.Therefore,the effective implementation of employee stock ownership not only enhances the competitiveness of the company and profitability,but also injects a new vitality into the enterprise.This paper analyzes the impact of employee stock ownership plan on the degree of corporate earnings management,and uses principal component analysis and propensity matching score method to examine the impact of management power on the relationship.This paper will study the above issues and provide more targeted guidelines and suggestions for the implementation of the employee stock ownership plan in China.This paper selects the data of stock market among Shanghai and Shenzhen from 2014 to2017 as the research object,and uses empirical analysis to study the impact of the implementation effect of employee stock ownership plan on the company's earnings management.Especially when management's power is used as a kind of indirect tool to further and have an impact on earnings management.The framework of this paper is as follows: It is divided into five chapters: The first chapter is the introduction.In this chapter: the purpose and background of the research,the research content and significance,the research methods and research framework,and the innovation points will be explained.The second chapter is the theoretical basis and literature review.In this chapter,we will start with theoretical support and literature review.First,we will make a conceptual analysis of employee stock ownership plan,earnings management andmanagement power from the theoretical level.After the three relationships are collated and analyzed,the domestic and foreign research literature related to the employee stock ownership plan will be reviewed and summarized.The third chapter is the empirical research design.In this chapter,research will be carried out based on the analysis of each variable like putting forward corresponding hypotheses,analyzing each variable and constructing the corresponding model according to the hypothesis.The fourth chapter includes the empirical results and analysis.In this chapter,the above hypothesis will be verified and given deep interpretation and analysis.The fifth chapter includes the conclusions and recommendations of the research.In this chapter,the results of the empirical research will be elaborated.The employee stock ownership plan is implemented in a standardized and orderly manner in China for the corresponding policy recommendations.Through descriptive statistics,principal component analysis,propensity matching score method and empirical analysis test,the paper draws the following three conclusions:(1)The implementation of employee stock ownership plan is positively related to earnings management.It means that the implementation and incentives of the employee stock ownership plan make the earnings management strength stronger;(2)Management power is positively related to earnings management.The greater the power of the company's management,the stronger the earnings management strength;(3)The intersection of the employee stock ownership plan and management power is positively related to earnings management.The implementation of the employee stock ownership plan significantly strengthens the positive impact of management power on earnings management.