Research on Earnings Management in Chinese Listed Companies Influenced by New Accounting Standards
|School||Wuhan Polytechnic University|
|Keywords||new Accounting Standards listed companies earnings management|
With the development of stock market and the coming forth of more and more listed companies in our country,more and more problems emerges in earnings management,which attracts the attention of government departments and the mass investors. To enhance the quality of accounting information,and prevent listed companies from earnings management,China’s Ministry of Finance promulgated the new Accounting Standards for Enterprises on February 15,2006. The same entered into force as of January 1,2007. This new accounting standard made a far-reaching impact on earnings management. The quality of accounting information is enhanced. But it can’t completely get rid of earnings management for its imperfection. A new round of game between accounting standards and earnings management continues. This is the background of this article.By adopting an approach which combines with the normative research and empirical research,this article made an analysis on the impact on earnings management in listed companies after the implement of new accounting standards. Firstly it theoretically explicates systematically the motivation,means of earnings management and the relationship between accounting standards and earnings management. Moreover,it made an analysis of the practice of earnings management before the implementation of the new accounting standards by actual cases. Secondly,it theoretically made an analysis on the impact on earnings management in listed companies after the implement of new accounting standards,i.e. the important adjustment on the terms on fair value, stock management,affiliate transaction, impairment of assets etc.,which will control the earnings management of listed companies. Other the other sides, the revisions on the terms for intangible assets, non-monetary transaction,debit restructuring and borrowing costs might increase the space for earnings management. On the aspect of empirical research,it takes382 companies as sample,made an analysis based on the data of year 2005,2006,2007 and 2008. The result shows that the implementation of the new accounting standards hasn’t restrained the earnings management of listed companies,but also provides new space for that. In the end,it raised some new suggestions to control over earnings management of listed companies based on the above result of analysis.