—Since earnings management is financial behavior under the control of managers, what kind of management is more likely to engage in earnings management? Firstly, this paper theoretically analyzes the mechanism of management characteristics on the impact of earnings management. Secondly, this paper does empirical study taking 216 listing corporations which have implemented equity incentive as the research sample. Then, we establish the regression model and analyze the effects of age, education level, power and equity incentive level of management on earnings management. The result shows that there is no evidence of an association between the age of management and earnings management. The effect of the constitution dimension of management rights on earnings management isn’t consistent which leads to weak correlation between the management power and earnings management. The education level and equity incentive level of management is positively corrected with earnings management.
—Management characteristics, equity incentive, earnings management.
The authors are with the College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, China (e-mail: email@example.com, firstname.lastname@example.org, email@example.com, firstname.lastname@example.org).
Cite: Lingyun Wang, Gumende Rumbidzai Florence, Enhua Hu, and Yue Sun, "Relationship between the Management Characteristics and Earnings Management in Chinese Listed Companies," International Journal of Social Science and Humanity vol. 7, no. 2, pp. 128-133, 2017.