Empirical Study on Earnings Management of Chinese Real Estate Listed Companies

According to the specific pre-sale system of real estate enterprises, this paper references the extended Jones model and constructs an earnings management model which is especially suitable to the real estate listed companies to research their level of earnings management, by adding the correcting variable of deposit received into the extended Jones model. At the meantime, demonstrate the influence of four main earnings manipulation variables on earnings management of real estate companies. Empirical research shows that there is significant earnings management behavior among Chinese real estate listed companies, and the relative change of deposit received has greater impact than that of other earnings manipulation variables, including assets depreciation reserves, account payable and investment income.