Research On The Influence Of Chief Financial Officer Status On Earnings Management Of Listed Companies

Nowadays,as the further development of the market economy,the separation of the ownership and the management result in the agency problems getting worse.The operator may beauty their statement in order to chase their maximal interest,which comes with the earnings management.This is mainly caused by two reasons.One is the consideration of self-interest.Another is the inherent limitation of asymmetry of internal and external information.This kind of activity sacrifices company's long-term development to short-term results.Not only bad for company's business development,but also affect decisions made by outside investors.Therefore,for the healthy development of capital market,restrain the trend of earnings management is an important topic.As an executive which has main effect on enterprise value management,we can't ignore the influence of Chief Financial Officer to earnings management.The existing research mainly focuses on the difference between CFO personal characteristic,but seldom combines with the cultural and social background of China.In fact,the higher position of CFO in the executives means the greater power.This will be better for giving suggestions and execute solution,and also have more effective supervision and counterbalance on the earnings management intention of CEO.This paper examines the effect of CFO's status in the company on the enterprise earnings management level by using the data of 2012 to 2017 years'A-share listed companies.The research shows that the higher position of CFO can contribute to inhibit enterprise earnings management;the effect is more obvious in non-state-owned enterprises;and in the high board independence of directors group the more obvious of the effect above is.This paper can be divided into these six parts.The first part is the introduction.This part first explains the research background of this article,and the research purpose and significance of this research.Then it puts forward the research ideas and logic framework of this paper,and expounds the research method and structure arrangement adopted in this paper.The second part is the literature review.This part starts from the researches of CFO and earnings management,ends with the evaluation and summary of relative theory achievement on CFO and enterprise earnings management.The third part is the theoretical analysis and hypothesis.This part begins with the relative theory of CFO and enterprise earnings management,explores the role of earnings management in corporate governance from the perspective of CFO.According to this,this paper brings forward the research hypothesis.The forth part is the research design.This part introduces the sources of data and samples of the article.Besides,it explains the meanings and metrics of dependent variables,independent variables and control variables which are involved in this paper,and constructs the empirical models which are needed.The fifth part is the empirical test.This part firstly carries out industry statistics and basic descriptive statistics on the variables and data of this paper.Then,the data of A-share listed companies from 2012 to 2017 were used for empirical research,and the results were analyzed and robustness tested.The sixth part is the conclusion and suggestion.In this part,it first gives a farther explanation of the empirical research results of the fifth part,and provides countermeasures and suggestions for the improvement of CFO system.Besides,it gives summarize and analyzes the progress this research has made and the problems it has presented,putting forward the prospects for further study.The conclusions drawn in this paper are as follows:There is a significant negative correlation between the position of CFO and the level of corporate earnings management,which indicates that the higher position of CFO can significantly inhibit the earnings management of enterprises.After distinguishing the nature of the enterprise,compared with the state-owned enterprises,the higher CFO status of the non-state-owned enterprises has more significant inhibition on the enterprise earnings management level than the state-owned enterprises.After distinguishing the independence of the board of directors,the effect of the higher CFO status on earnings management is only found in companies with high board independence.The contributions of this paper are as follows.Firstly,it enriches the existing empirical research on CFO's role in management of enterprises.Secondly,it provides different points for the influence factors of enterprise earnings management.Finally,it provides countermeasures and enlightenment for corporate CFO in transition economy and emerging markets to play their role and help reduce earnings managements.