Research On The Effect Of Earnings Management On Audit Opinions

The issue of earnings management of listed companies has always been one of the hot topics in modern financial theory.With the continuous development and improvement of the capital market,external audit also plays an important role in constraining the earnings management behavior of listed companies.Therefore,this paper uses the earnings management research as a starting point,the impact of earnings management on audit opinions as the main line,and uses top echelon theory to study the impact of earnings management on audit opinions under the background characteristics of different senior executives.This article intends to combine China's current unique capital market and institutional background,conduct in-depth analysis based on the theme of the impact of earnings management on audit opinions.First,we will sort out the relevant literature on earnings management,earnings management and audit opinions,and senior executives' background characteristics,pave the way for the main research part of the dissertation.Secondly,it will be based on principal-agent theory and information asymmetry theory to construct a theoretical analysis framework for studying the effect of earnings management on audit opinions,and set the listed companies of Shanghai A-shares from 2014 to 2016 as samples,to empirically study the impact of earnings management on audit opinions.Furthermore,based on top echelon theory,this paper constructs a theoretical framework for the study of the impact of different background characteristics of senior executives on the relationship of earnings management and audit opinions.Finally,according to the theoretical analysis and empirical research,this paper puts forward the research conclusions and the management suggestions for corporate governance.Overall,the research results of this paper show that: Firstly,Earnings management has a negative impact on the standard audit opinion;Secondly,The listed company's upward earnings management is more likely to be issued a standard audit opinion than the downward earnings management,indicating that the auditor is more cautious and sensitive to downward earnings management behavior;Thirdly,The age of top management team and the degree of top management team will strengthen the negative impact of earnings management on the standard audit opinion.This study has practical significance and certain reference value to the governance of corporate earnings management behaviors,the promotion of sustainable development of the capital market,and the selection and hiring of senior executives.