Abstract
Earnings management refers to the earnings manipulation from management within the range allowed by the Accounting Standards and the Companies Act, or through the restructuring of business activities or transactions. Earnings management of listed enterprises is the problem which stakeholders pay great attention to. Mismanagement and excessive earnings management not only affect the investment behavior of investors, but also hinder the healthy development of China’s securities market. As there is a large number of listed companies in China, earnings management studies have included a wide range of industries, but rarely involved in the construction enterprises. This paper choose listed construction enterprises in China from 2007 to 2011 as the study sample, using modified JONES models, selecting relevant variables to construct a multiple regression model. Through the empirical study carried out on the samples, proves the existence and universality of earnings management. Finally, combining with the current actual situation in our country, the paper put forward policy suggestions from several aspects, in order to reach the purpose of constraint management, and excessive earnings management behavior.
Published Version
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