Empirical Research on the Relation Between Shares Reduction of Senior Executives and Earnings Management

Yuqing SHEN, Rui WANG, Bingjie WANG, Jiangxia LIU

Abstract


Using listed companies with a presence of shares reduction of senior executives after the split share structure reform as research objects, we systematically study whether there are changes in earnings management behavior of senior executives’ shares reduction, as well as the relationship between the shares reduction degree and earnings management degree. Our analysis reveals that companies with a presence of shares reduction of senior executives have significantly positive controls over accounting earnings in the years of 2008 and 2009. However, there is no significant correlation between the level of earnings management of listed companies in China and the scale of shares reduction of senior executives.

Keywords


Shares reduction of senior executives; Earnings management; Shares incentive

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References


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DOI: http://dx.doi.org/10.3968%2F3956

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