Review of Earnings Management Literature

Weihao Gu

doi:10.4236/me.2020.113046

Abstract

Earnings management has always been a research hotspot in the field of accounting. This article is about the research on earnings management published in China in the five years from 2015 to 2019, including Economic Research, Management World, Accounting Research, Financial Research, China Industrial Economy and World Economy. Now I chose to sort out and summarize relevant literature as samples to analyze the status of domestic earnings management research. The relevant literature is summarized according to the factors affecting earnings management, the economic consequences of earnings management, and earnings management as an impact path classification in order to provide a reference for future earnings management research.

Highlights

In recent years, earnings management, as a hotspot in financial accounting research, has received widespread attention from Chinese and foreign scholars
This article is about the research on earnings management published in China in the five years from 2015 to 2019, including Economic Research, Management World, Accounting Research, Financial Research, China Industrial Economy and World Economy
I chose to sort out and summarize relevant literature as samples to analyze the status of domestic earnings management research

Summary

Introduction

Earnings management, as a hotspot in financial accounting research, has received widespread attention from Chinese and foreign scholars. In response to this problem, Chinese and foreign scholars have conducted empirical research in various aspects, and have made some research results worthy of attention. Some research results of empirical accounting scholars on earnings management objectively reveal some regular phenomena in this field, so far no consensus has been reached on issues of general significance. The first is that American accountant William R Scott argued in his “Financial Accounting Theory” that earnings management means that, within the scope permitted by GAAP, the choice of accounting policies enables the operator’s own interests or the enterprise The act of maximizing market value.

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