Research on Decision-Making Behavior of Analysts Coverage and Real and Accrual Earnings Management Based on SPSS Software Technology

Abstract

The paper researches if decision-making behavior of analysts coverage can influence the earnings management of companies. The study selected 3727 samples and used SPSS software regression technology. The results indicate that a higher level of analysts coverage is related to lower accrual earnings management and real earnings management,which suggests that analysts have supervisory function to companies and can play an efficient external governance role to investor protection.The results also indicates that the larger companies eager to adopt real earnings management whereas the smaller companies would like to use accrual earnings management, and the enterprises with higher cash flow volatility are eager to adopt earnings management due to unstable operation .