Abstract

Research on earnings management based on corporate governance and business performance

Author(s): Long-Zhong Su, Hai Tao Wang, Qi Chen

In this paper, China's securities market data for 2010-2012 were investigated, using the adjusted cash flow model metering section of Jones accruals manipulation, analysis of earnings management between the private listed companies and state-owned listed companies and their differences decisive factor. The study found that earnings management of private listed companies is significantly higher than the stateowned listed companies. Further empirical evidence also shows that the decisive factor in restricting the role of differences in earnings management incentives from business performance, rather than corporate governance.