A comparison of listed firms earnings management among different stock markets in China

DOI: 10.5176/2251-1997_AF19.269

Authors: Ms. Weiyan Zhang

Abstract: In this paper, the impact of the stock market differences on earnings management behavior of listed firms in Chana is studied empirically. Based on the financial data of the sampled Chinese A-share listed firms that implemented equity incentive plans from 2011 to 2012, the cross-section modified Jones model is adopted to measure the degree of earnings management, and the descriptive statistics and independent sample T-test methods are taken. The results show that the earnings management degree of listed firms in SME and GEM is significantly higher than that of MBM, and the earnings management degree of listed firms in GEM is higher than that of SME.

Keywords: -listed firms; earnings management; stock market difference; modified Jones model