Title :
Management Motivation and Earnings Management Methods
Author :
Zhonghai Yang ; Sun Ying ; Qianqian Zhang
Author_Institution :
Inst. of Accounting, Harbin Univ. of Commerce, Harbin, China
Abstract :
In this paper, we study the effectiveness of the management motivations on earnings management methods based on thousands of samples between 2006 and 2011. The empirical results indicate that Real Earnings Management is used to manipulate the earnings in order to turn a profit, avoid loss, refinance, and change executives. The companies with higher executive compensations intend to use REM. However, making big profits by using Real Earnings Management activities is not popular because the capital market in China is not perfect enough.
Keywords :
financial management; stock markets; China; REM; capital market; executive compensations; management motivation; real earnings management method; Companies; Contracts; Educational institutions; Government; Industries; Production; Accrual earnings management (AEM); Management motivation; Real earnings management (REM);
Conference_Titel :
Cyber-Enabled Distributed Computing and Knowledge Discovery (CyberC), 2013 International Conference on
Conference_Location :
Beijing
DOI :
10.1109/CyberC.2013.55
