Earnings Management Incentive on Financial Constrain

摘要

We take the Chinese listed company from 1998-2006 as samples, analysis the incentive to easy financial constraint. We find that the company will increase the report earnings by earnings management when then they are financial constrain, and financial constrain is positive related to the change of earnings management, we prove that to easy financial constrain is an important incentive of earnings management. We also find that the incentive on turn loss into gain and smooth earnings are exist in china stock market, the compensation is a factor of earnings management, and we do not find the evidence that the self-interest incentive, which is proxy by whether the president of the board is also CEO, are exist in China.