Analysis on the Stock Market Response to Earnings Management Behavior1
An accounting report contains earnings management information. The changes of stock prices before and after the date, on which the accounting report is published, comparing with the annual average stock price may reflect the information of market response to earnings management. Bivariate regression model shows that the average stock price has not significant correlation with net profit and cash flow of operating activities before and after the date on which the accounting report is disclosed, it is influenced by various factors. The higher degree of earnings management, the higher probability of the listed companies feeing financial crisis is. Securities regulatory departments should supervise and control the disclosure of information or data of accounting reports or statements effectively, so as to promote a healthy development of securities business. If the departments can improve their management and earnings prediction, they will be in a better position to control captical market crisis.
Accounting reports Earnings management Market response
Shangzhi Yue Xianghong Li
Economics and Management College Northeast Forestry University,150040, China
国际会议
哈尔滨
英文
180-186
2010-09-10（万方平台首次上网日期，不代表论文的发表时间）