The Relationship between Enterprise Equity Incentive and Earnings Management in Big Data Era

Abstract

With the development of China's securities market, earnings management of listed companies has attracted more and more attention from creditors, shareholders, securities regulatory authorities and other stakeholders. Equity incentive has two sides. If it can be effectively used, it will greatly mobilize the enthusiasm of management and bring about long-term incentive effect. Unlike mature western markets, China's securities market is an emerging market in a transitional economy. Because there is not a high correlation between the degree of earnings management and the compensation level of the management in China's listed companies, the motivation of the management to improve their compensation level is not significant for the purpose of self-interest. This paper analyzes the relationship between equity incentive and earnings management of Listed Companies in the era of big data, focusing on the relationship between equity incentive and earnings management.