The Earning Management of the Chemical Industry in the Antidumping Investigation---Empirical Data from China Listed Company

With the integration of global economy, import anti-dumping cases soared, particularly gathered in the chemical industry. In anti-dumping investigations of western enterprises, lower adjustment of earnings in the report period is very common to pursue political protection. In order to verify whether there was downward earnings management in anti-dumping investigations in China´s chemical enterprises, this paper selected 14 listed companies as the samples, which legally registered for the status claimed as the anti-dumping suits before the end of 2006. By using the Deangelo model, the yearly Manipulation of the accrued profits were measured (the period was of the three years before and after the suits of the sampled companies were registered), and then to do T-value testing and analyzing. The results show that there is no downward earnings management in the anti-dumping investigation periods in the listed companies of the chemical industry.