Content area
Abstract
Translation from original language as provided by author
Earnings management is the study of modern accounting theory, an important area. Earnings management accounting practices is also a kind of management behavior. Shareholding structure, such as the stock concentration, stock checks and balances degree and nature of the largest shareholder of the company's agents had a common impact of conflict in the role of, and control of the Company's information disclosure policy had an impact. Resulting from the earnings management terms, the unreasonable structure of corporate governance is an important reason, of which the shareholding structure of the main aspects of the problem is contradictory. Based on this, this article from the ownership structure of this constraint analysis of their impact on the earnings management, from the stock concentration, composition and equity stake of checks and balances in these three areas to study the degree of ownership structure on the impact of earnings management. This paper selected in 2007 listed companies in Shanghai and Shenzhen stock markets for the study sample, the equity structure of listed companies in China and the relationship between earnings management of the empirical analysis. The study found that the proportion of the largest shareholder with U-shaped relation between earnings management, that is, when the proportion of the largest shareholder that less than 20%, the concentration of stock was negatively correlated with the degree of earnings management, but the largest shareholder with ratio exceeds 50%, due to the dominance phenomenon obviously, the lack of checks and balances, equity earnings management level of concentration and a significant positive correlation. When the listed company's largest unit of state-owned property, the company's financial reporting fraud are more likely to occur. The largest shareholder is state-owned listed companies are more administrative in nature, the largest shareholder of the listed non-administrative units, the company's performance worse. The main state-owned shares held in place, on the one hand, the state as a business owner or shareholder, its ability to control free enterprise, but the executive commission to control the enterprise; the other hand, the Government has not adequately fulfill their supervisory responsibilities of enterprises. Because the executive and government officials, although residual control, but there is no residual claim, the lack of sufficient power to effectively monitor and evaluate the managers, resulting in insider control. When the first major shareholder is state-owned property, line agencies or state-owned asset management companies and other non-production and business units, because of its weak oversight power, the company earnings management easier. Degree of earnings management equity of checks and balances the degree of influence is very obvious that the greater degree of equity of checks and balances, the lower level of earnings
