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Information Engineering and Education Science – Zheng (Ed.)
© 2015 Taylor & Francis Group, London, ISBN 978-1-138-02655-1
The relation between equity incentives and earnings
management in China
Yang Cai & Lin Zhang
Harbin University of Commerce, Harbin, China
ABSTRACT: Taken Chinese A-share listed firms that implement equity incentives in 2011 as samples,
this study empirically researches the relation between equity incentives and earnings management in
China. The cross-section modified Jones model is used to measure the degree of earnings management.
Then, the paired sample T test and multiple linear regression method are used in the analysis. The results
show that the listed firms widely manipulate downward earnings management before the announcement ...