The Research on Earnings Management and Financing Constraints in China Listed Companies

We make empirical research to analysis the relationship between financing constraints and earnings management by using the financial data of Shanghai and Shenzhen A-share listed companies in recent years. We come to the conclusion by constructing the econometric model and making regression analysis. The result shows that there is a significant correlation between fmancing constraints and earnings management which means financing constraints and corporate earnings management are positive related. In order to release financing constraints, the companies carry out earnings managements to beautify the disclosure of fmancial information. In addition, the result also indicates that enterprise profitability, assets size and short-term loan have an effect on earnings managements.