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

Abstract

For the operation and development of an enterprise, its management methods and means need to be constantly improved with the development of the times, so as to improve the company management system. Equity incentive and earnings management have become the main means of corporate governance. In fact, equity incentive is to encourage the operators to manage and operate the company better by giving them some equity as rewards and sharing the risks of stocks. The operation and development of enterprises need to constantly improve the management mode and mode according to the development of the times, so as to improve the company's management system, promote the improvement of the company's economic benefits and the company's long-term development. Starting from the choice of incentive mode, this paper discusses the influence of listed companies choosing different incentive modes on earnings management and corporate performance in the era of big data, which not only deepens the current research on equity incentive, but also helps to put forward feasible suggestions for listed companies to choose which incentive mode.