Earnings management in China: an exploratory study

Baralexis, S. (2004), “Creative accounting in small advancing countries: the Greek case”, Managerial Auditing Journal, Vol. 19 No. 3, pp. 440‐61.

Beatty, A., Chamberlian, S. and Magliolo, J. (1995), “Managing financial reports of commercial banks: the influence of taxes, regulatory capital and earnings”, Journal of Accounting Research, Vol. 33 No. 2, pp. 231‐61.

Beneish, M.D., Press, E.G. and Vargus, M.E. (2000), “An empirical examination of the relation between incentives to avoid debt covenant default and insider trading”, working paper, Indiana University, Bloomington, IN.

Cahan, S. (1992), “The effect of antitrust investigations on discretionary accruals: a refined test of the political cost hypothesis”, The Accounting Review, Vol. 67 No. 1, pp. 77‐95.

CFA Institute (2007), China Corporate Governance Survey, CFA Institute, Hong Kong.

Chen, X.Y., Xiao, X. and Guo, X.Y. (2000), “Additional offering and earnings management of listed companies”, Economic Research, Vol. 1 (in Chinese).

Chung, C.K. (2005), China Taxation‐2005 ACCA, Zhongshan University Press, Guangzhou.

Collins, J., Shackeford, D. and Wahlen, J. (1995), “Bank difference in the coordination of regulatory capital, earnings and taxes”, Journal of Accounting Research, Vol. 33 No. 2, pp. 263‐91.

Deangelo, L. (1986), “Accounting numbers as market valuation substitutes: A study of management buyouts of public stockholders”, The Accounting Review, Vol. 61 No. 3, pp. 400‐20.

Dechow, P. and Sloan, R.G. (1991), “Executive incentives and the horizon problem: an empirical investigation”, Journal of Accounting and Economics, Vol. 17 Nos 1/2, pp. 113‐43.

Dechow, P.M. and Skinner, D.J. (2000), “Earnings management: reconciling the views of accounting academics, practitioners, and regulators”, Accounting Horizons, Vol. 14 No. 2, pp. 235‐50.

Defond, M. and Jiambalvo, J. (1994), “Debt covenant violation and manipulation of accruals”, Journal of Accounting and Economics, Vol. 17 Nos 1/2, pp. 145‐76.

Guangdong Statistic Bureau (2002), Report of the Second Guangdong Basic Unit Survey (in Chinese), available at: www.stats.gov.cn/tjgb/jbdwpcgb/dfjbdwpcgb/t20030209_ 64899.htm.

Guidry, F., Leone, A. and Rock, S. (1999), “Earnings‐based bonus plans and earnings management by business unit managers”, Journal of Accounting and Economics, Vol. 26 No. 1, pp. 113‐42.

Hao, J. (1999), “Economic analysis on the adverse effect of the non‐trading characteristics of state‐owned shares”, Research on Financial and Economic Issues, Vol. 2 (in Chinese).

Healy, P. (1985), “The effect of bonus schemes on accounting decisions”, Journal of Accounting and Economics, Vol. 7 Nos 1/3, pp. 85‐107.

Healy, P.M. and Wahlen, J.M. (1999), “A review of the earnings management literature and its implications for standard settings”, Accounting Horizons, Vol. 13 No. 4, pp. 365‐83.

Holthausen, R.W. and Leftwich, R.W. (1983), “The economic consequences of accounting choice”, Journal of Accounting and Economics, Vol. 5 No. 2, pp. 77‐117.

Holthansen, R., Larcker, D. and Sloan, R. (1995), “Annual bonus schemes and the manipulation of earnings”, Journal of Accounting and Economics, Vol. 19, pp. 29‐74.

International Finance Corporation (2005), Step by Step: Corporate Governance Models in China – The Experience of the International Finance Corporation, International Finance Corporation, Washington, DC.

Ip, C.K. and Noronha, C. (2007), “The progress of accounting harmonization in China: a comparison of A‐share and H‐share financial results”, Managerial Auditing Journal, Vol. 22 No. 6, pp. 620‐40.

Jiang, Y.H. and Wei, G. (2001), Accounting and Financial Problems in Chinese Listed Companies, Northeastern University of Finance and Economics Press, Dailin (in Chinese).

Jones, J.J. (1991), “Earnings management during important relief investigations”, Journal of Accounting Research, Vol. 29, pp. 193‐228.

Key, K.G. (1997), “Political cost incentives for earnings management in the cable television industry”, Journal of Accounting and Economics, Vol. 23 No. 3, pp. 309‐37.

Moyer, S.E. (1990), “Capital adequacy ratio regulations and accounting choices in commercial banks”, Journal of Accounting and Economics, Vol. 13 No. 2, pp. 123‐54.

Mulford, C. and Comiskey, E. (2002), The Financial Numbers Game: Detecting Creative Accounting Practices, Wiley, New York, NY.

National Statistic Bureau (2005), China Statistic Annual, National Statistic Bureau, Beijing.

National Statistic Bureau (2002), Division Standard of Large/Medium/Small Sized Industrial Enterprises, National Statistic Bureau, Beijing.

Ortega, W.R. and Grant, G.H. (2003), “Maynard manufacturing: an analysis of GAAP‐based and operational earnings management”, Strategic Finance, Vol. 85 No. 1, pp. 50‐6.

Public Oversight Board's (POB) Panel on Audit Effectiveness (2000), Reports and Recommendations: Exposure Draft 31 May 2000, Stamford, CT.

Parfet, W. (2000), “Accounting subjectivity and earnings management: a preparer perspective”, Accounting Horizons, Vol. 14 No. 4, pp. 481‐8.

Ren, C.Y. (2004), Earnings Management of Listed Companies and Accounting Standards Setting (in Chinese), China Financial and Economics Publishing House, Beijing.

Schilit, H. (2002), Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reporting, 2nd ed., McGraw‐Hill, New York, NY.

Schipper, K. (1989), “Earnings management”, Accounting Horizons, Vol. 3 No. 4, pp. 91‐102.

Scholes, M., Wilson, G.P. and Wolfson, M. (1990), “Tax planning, regulatory capital planning and financial reporting strategy for commercial banks”, Review of Financial Studies, Vol. 3 No. 4, pp. 625‐50.

Security Times (1999), “Is it reasonable for listed companies to manage earnings?”, Security Times, January 8 (in Chinese).

Sweeney, A.P. (1994), “Debt covenant violations and managers' accounting reponses”, Journal of Accounting and Economics, Vol. 17, pp. 281‐308.

Teoh, S.H., Welch, I. and Wong, T.J. (1998a), “Earnings management and the post‐issue performance of seasoned equity offerings”, Journal of Financial Economics, Vol. 50 No. 1, pp. 63‐99.

Teoh, S.H., Welch, I. and Wong, T.J. (1998b), “Earnings management and long term market performance of initial public offerings”, Journal of Finance, Vol. 53 No. 6, pp. 1935‐74.

Teoh, S.H., Wong, T.J. and Rao, S. (1998), “Are accruals during initial public offerings opportunistic?”, Review of Accounting Studies, Vol. 3 Nos 1/2, pp. 175‐208.

Wan, J.B. (2003), “Billionaire sun's dream and pain”, Southern Weekend, November 6.

Wang, D. (2005), “The effect of ownership structure on the quality of accounting information (in Chinese)”, available at the Chinese Outstanding Masters Theses Full Text Databse (www.cnki.net).

Watts, R.L. and Zimmerman, J.Z. (1986), Positive Accounting Theory, Prentice‐Hall, Englewood Cliffs, NJ.

Wu, L.S. (2004), Classified Remedies for Distorted Accounting Information, Beijing University Press, Beijing (in Chinese).

Zhu, L.H. and Su, Z. (2002), “Earnings management in small and medium sized firms”, China Economic and Trade Herald, Vol. 18 (in Chinese).