Abstract An empirical study is made on the relationship between stock options and earning management by processing the data of listed companies at Shanghai and Shenzhen Stock Exchanges from 2006 to 2008. It shows that the number of stock options and the degree of earnings management are positively related wheras the exercise restriction period is negatively correlated with the degree of earnings management. Meanwhile, the effect of earnings management after stock options in the state-owned companies is more significant than that of non-stated-owned companies; the effect of earnings management after stock options in the high degree marketization areas is weaker than the low degree marketization areas. In addition, high quality external audit effectively reduces the extent of earnings management.
SONG Wen-Ge,RONG Hua-Xu. Stock Options、Institutional Environment and Earnings Management——Based on the Empirical Analysis on Listed Company Data. Economic Survey, 2012, 1(3): 090.
2012, Vol. 1 
