Analysis of Earnings Management of Listed Companies

Author: Li Jidong
Publisher:
Publish Date: 2006-05-01
Features: Earnings management of listed companies has become a significant factor hindering the healthy development of China's stock market. Research on this issue holds important practical significance and certain theoretical value. This book proposes a new earnings management detection model, the Cash Flow-Earnings Model. Earnings management is essentially a corporate governance issue. Starting from the core concept of control rights, this book views the earnings management of corporate controllers as a pursuit of control right rent and establishes a Controller-Auditor Model to analyze the relationship between control rights and control right rent. Public investors are often victims of earnings management. To address this, the book raises the question of "whether corporate management is responsible for safeguarding the interests of public investors" and discusses this issue from the perspectives of "shareholder primacy" and "stakeholder theory." The author argues that shareholder interests do not inherently outweigh those of other stakeholders, and corporate management has a responsibility to protect the interests of public investors. This book can serve as a reference for researchers in this field, as well as provide insights and materials for students and practitioners in related disciplines to understand earnings management. The content of this book mainly includes two parts: the first part is about earnings management research, which can serve as a reference for research in the field of earnings management; the second part is case studies of earnings management behavior by listed companies, all of which are real corporate cases. Through these cases, readers can gain an intuitive understanding of the earnings management behavior and motivations of listed companies. This part is closely tied to practice and has certain practical guiding significance. The book systematically introduces the concept of earnings management, the current state of research, empirical testing methods, and major earnings management techniques used by listed companies. It also explores the institutional factors contributing to earnings management behavior. This book can serve as a reference for researchers in this field, as well as provide insights and materials for students and practitioners in related disciplines to understand earnings management.