Empirical Research on the Earnings Manipulation Behavior of the Executives Owning Shareholdings

摘要

With China's state-owned enterprises accomplishing share-trading reform and capital markets perfect constantly, more and more executives of a listed company became shareholders. The problem of manipulating profits by executives owning the listed company's shareholdings has been being paid more and more attention. According to some of existing research, executives would manipulate profits in order to maximize their own interests while they hold companies' shareholdings. Based on this, two samples are selected according to the A -share market where executives hold actual shares and stock options respectively from 2007 to 2009. we make an inspection on the relationship between executives' shareholdings and the earnings manipulation of the listed company by using the linear regression method. As a result, the behavior of the earnings manipulation by executives owning shareholdings in listed companies indeed exists.