Literature review on the relationship between managerial ability and real earnings management

Earnings management is one of the focuses in the field of accounting research, and its impact on the stakeholders of the listing corporation and the capital market has become increasingly evident. With the continuous improvement of accounting standards and the gradual improvement of laws and regulations, the management of the company is more inclined to take a more subtle means of real activity earnings management. There are many literatures about corporate governance and earnings management, but only from the perspective of the managerial ability to study its impact on earnings management is less and less. Therefore, this paper attempts to research on managerial ability and real earnings management. This paper introduces the conception, motivation and means of the real earnings management and the conception of the managerial ability, then analyzes the relationship between them, finally puts forward the future research direction.