Regression Analysis of Executive Shareholding and Corporate Earnings Management

摘要

The distortion of financial data of Chinese listed companies emerges is constantly emerging, for example earnings management through various means such as whitewashing financial reports, which is bound to have a negative impact on China's economic development. This paper uses regression analysis to examine the relationship between the company's executive shareholding and earnings management level. Under certain conditions, the company's executive shareholding and earnings management level have a negative correlation. The larger the company's executive shareholding, the more effective the governance mechanism, and the higher the efficiency of supervision and incentives, the more it will help the management to operate the company with the goal of maximizing shareholders' interests and reduce earnings management.