Earnings Management Research from the Perspective of Managerial Power——Based on the Inspection of Accrual and Real Earnings Management

Combined with the principal-agent theory,this paper uses all A-share listed companies from Shanghai and Shenzhen Stock Exchange as samples,between 2007 and 2010,deeply analyses the relationship between the managerial power and earnings management.The authors find that the enterprises more likely to manage earnings when the managerial power is larger;the managers from the state-owned listed companies prefer to using real earnings management,the managers of non-state-owned enterprises tend to use accrual earnings management;two kinds of earnings management exists complementary relationship.The results not only provide new evidence that managers manipulate earnings,but should also cause the concerns of investors,creditors,SASAC and other securities regulatory departments.