The Earnings Management Of Gree Electric Appliances,Inc.of Zhuhai

Earnings management is an important aspect of the enterprise management research.Nowadays,the stock market is developing rapidly in China.Earnings management is a common phenomenon in China’s listed companies.It has attracted wide attention and become a new research topic.In order to achieve the qualification of listed companies,corporate profits and adjust the stock price,listed companies through a variety of means to adjust the profit,the phenomenons of enterprise bring negative effects to itself and the capital market.Based on earnings management’ research of listed companies,the paper select Gree company Inc.as the object.First,analyzes the status quo of Gree company earnings management,from the means of earnings management and effect to analyze.Secondly,I analyze the motivation of earnings management of Gree company,and analyze the internal and external structure of Gree company to explore how to affect Gree company’s earnings management behaviors.This paper find the Gree company exist that the shareholding structure is unreasonable,supervision of the board of supervisors is weak,the independent director system is not perfect and the information asymmetry between management and shareholders.In terms of external oversight,external supervision is weak,accounting standards are imperfect and the overall quality of investors is unprofessional.Next,analyze the external environment of Gree company,explore the macroeconomic and industry competition’s environment how to influence the earnings management.And find that if the macroeconomic in systolic and industry environment is more competitive,it will enhance the Gree company management to implement earnings management behavior.Finally,in view of the Gree company’s problems about the external and internal structures,I put forward rationalization proposal to govern the Gree Electric Appliances’ earnings management from internal and external structure.Study the Gree company’s earnings management behavior is conducive to information users to identify the earnings management.The investors can understand the company management and financial situation,and the govement can make effective regulatory policy.For Gree company,this paper puts forward some suggestions of perfecting the internal structure of it.In addition,I hope that the supervision department strengthen the external supervision of listed companies,comliete the relevant laws and regulations,and increase the intensity of listed companies’ punishment to regulate the behavior of Chinese listed companies.