Study On The Relationship Between Salary Incentive,Heterogeneity Of Executive Team And Real Earnings Management

As a very important part of the corporate governance structure,the incentive methods and contents of the management incentive system,as well as the effect after its implementation,are concerned by the theoretical and practical circles.In the process of company management,executive incentive plays a positive role in the governance of listed companies,but at the same time,many scholars also pay attention to the impact of executive incentive on real earnings management.Under the two-right separation system of modern enterprises,due to different backgrounds such as educational background and social experience,owners and managers solve problems from different angles,and the interest motivation is also inconsistent,which will lead to managers' behavior of controlling accounting earnings that affects the healthy development of enterprises.However,most of the current research focuses on the role of executive compensation incentive in earnings management,but ignores the real earnings management behavior which is more hidden and has more serious consequences in the actual operation and management process.With the continuous improvement of accounting policies,laws and regulations,and the continuous strengthening of supervision by relevant regulatory authorities,the operating costs and operational risks of accrued earnings management are increasing,while the real earnings management is relatively more hidden,so the management will try to avoid the behavior of operating accrued earnings,but more tend to control earnings by changing the real trading activities to make all transactions more in line with the requirements of accounting standards.Secondly,this paper is based on the upper echelons theory,which holds that the characteristics of the senior management team will affect the strategic choice and financial performance of the company.Scholars generally focus on the relationship between the individual characteristics of the executive team and earnings management,but ignore the influence of the differences among team members.With the enrichment and improvement of the theory of upper echelons,we pay more and more attention to the effect of heterogeneity of senior management team on the earnings management behavior of enterprises.Therefore,based on the study of the influence of executive compensation incentives on real earnings management,this paper studies the moderating effect of executive compensation incentives on the relationship between the two from the perspective of personal characteristics of the executive team.Taking the A-share listed companies from 2012 to 2018 as research samples,this paper studied the influence of executive compensation incentive on earnings management behavior based on real business activities through theoretical analysis and empirical test,and at the same time studied the regulating effect of individual characteristics heterogeneity of executive team on the relationship between them.The results show that the monetary compensation incentive of management can significantly inhibit the real earnings management behavior of enterprises;the age heterogeneity and tenure heterogeneity of the senior management team will strengthen the negative correlation between them,while gender heterogeneity and educational background heterogeneity of the senior management team will weaken the negative correlation between them.Finally,according to the results of theoretical and empirical research,this paper provides some suggestions for the listed companies to develop the compensation incentive system,and also provides some constructive suggestions for the selection and employment of the executives of the listed companies,so as to promote the healthy development of the enterprises.