Challenges and Suggestions for Earnings Management Governance

Abstract

In recent years, with the exposure of a series of financial fraud incidents at home and abroad, the issue of earnings management has
increasingly drawn high attention from regulatory agencies, the academic community and the public. Especially against the backdrop of the
continuous deepening and development of Chinas capital market, how to effectively identify, curb and govern earnings management behaviors has become an important issue that urgently needs to be addressed to improve the quality of listed companies, maintain market order and
promote high-quality economic development. This article aims to conduct an in-depth analysis of the manifestations, motivations and governance challenges brought about by earnings management, and on this basis, put forward practical governance countermeasures and policy suggestions, with the expectation of providing theoretical support and practical reference for improving the information disclosure mechanism of
Chinas capital market and strengthening the construction of corporate governance structure.