Study On Earnings Management Behavior Under Equity Incentive Of ADSD Company

Since China’s listed companies began to implement standardized equity incentive system in 2006,the index system of equity incentive plan has been the focus of domestic academic research.But few academic research attention(especially the early studies)before equity incentive and the procedure of the implementation of equity incentive plan,at first the enterprise equity incentive and not many,academia lack of enough data to analyze and demonstrate the exercise performance condition,and the relationship between the performance and earnings management behavior during the reporting period,evaluate the effect of equity incentive empirical data is relatively scarce.After the implementation of the equity incentive management method of listed companies(trial)in China,with the promotion of the equity incentive plan,more and more enterprises began to use the equity incentive plan to motivate employees,thus creating enterprise value.Academia is slowly with the support of research data,the scholars found that performance conditions in the equity incentive for managers and management,the influence of people began to focus on the opportunism of equity incentive,including setting performance conditions in the incentive plan,as well as the equity incentive plan before and after the announcement of earnings management and value management behavior,for the study of the earnings management behavior of the equity incentive is also increasing.Many theories and practices have proved that equity incentive,as a long-term compensation incentive mechanism,alleviates a series of problems caused by the principal-agent mechanism to a certain extent,especially the interest conflicts arising from the separation of management right and management right under the enterprise system.However,with the later research,it is found that executives have the motivation to manipulate the company’s earnings before and after the implementation of equity incentive and during the whole incentive plan.If the equity incentive system is not perfect,it will cause the management to use earnings management for personal gain and fail to reach the real incentive,thus affecting the governance and development of the company.Therefore,the analysis and research on the relationship between equity incentive and earnings management is of great significance to the long-term development of enterprisesThis paper firstly sorts out the researches on equity incentive,earnings management and the relationship between them by domestic and foreign scholars,expounds the related concepts of them,and further explores the relationship between equity incentive and earnings management in the context of China’s equity incentive system based on relevant theoretical basis.Secondly,this paper takes ADSD company as the research object,and focuses on the analysis and study of earnings management behavior caused by the equity incentive plan launched by ADSD company.Hoping to ADSD company equity incentive analysis case,to enrich our country about the relationship between equity incentives and earnings management of listed companies of reference and guidance for the related research,perfecting accounting standards restrain the space of earnings management,but also help the listed company to perfect the equity incentive system to provide inspiration,for the government to strengthen the supervision of earnings management operation provide starting point.