The Research On The Choice Of Earnings Management Behavior Of Chinese Listed Companies-Based On The Life Cycle

In China's capital market,the problem of information asymmetry is always difficult to solve,because of the inconsistency between the two parties in the use of information,which allows some companies to conduct profit operations in a convert state.Therefore,most listed companies will tend to adopt earnings management.Unlike financial fraud,earnings management,as a "touch ball " behavior that is not explicitly prohibited in laws and regulations,is divided into two types:accrued earnings management and real earnings management.Especially there are specific behaviors that are more difficult to identify in earnings management,and these behaviors have brought many obstacles to the exchange of information in the capital market.Enterprises will go through different stages in the development process,which can be roughly divided into the bud period,the growth period,the mature period and the recession period.At different stages of the life cycle,the current purpose of the company will change,but obtain profits is the ultimate purpose of the company.For this purpose,the company has different motives in earnings management,and different motives will change the method used.This dissertation adopts research methods such as literature analysis,empirical research and case analysis methods,etc.On the basis of a review of relevant research that considers different earnings management behaviors in an enterprise's life cycle,it elaborates the related theoretical basis of earnings management,enterprise life cycle and non-recurring gains and losses,and information asymmetry.This dissertation collects relevant data of 1,348 manufacturing industry companies in the Shanghai and Shenzhen A-share market,by referring and revising the Jones model,Roychowdhury model,and use the economic data analysis software Stata 14.0 and SPSS 23.0 to test the existence of earnings management behavior,and the multiple linear regression model was established for the relevant factors for empirical analysis.This dissertation uses NanFeng Corporation.as an example to explain the methods and consequences of earnings management of listed companies in China.The conclusions of the dissertation are as follows:Earnings management behaviors are common among China listed companies,they will use accrual earnings management and real earnings management to adjust income and profits.However,the level of earnings management behavior will change during the specific life cycle of the company.During the growth period of capital accumulation,in order to attract investment,the company will perform positive accrual earnings management and a lower level of true earnings management.When the enterprise develops to a certain stage in the mature period,even if the company operates well,it will perform negative accrual earnings management and a higher degree of true earnings management for the reason of reasonable tax avoidance,the level of earnings management behavior will reach the highest point of the cycle at the same time.Business will decline in the recession period,to avoid being delisted by Special Treatmengt,company will lead to strong earnings management motivation.