Discussion on the Influence Mechanism of Employee Stock Ownership Plan on Company Earnings Management

Based on the samples of A-share non-financial listed companies in Shanghai and Shenzhen from 2013 to 2019, this paper studies impact implementation employee stock ownership plan earnings management, finds that is significantly positively correlated with company’s accrual management level. Further research shows has a higher effect upward than downward management. The above results show motivation ‘please’ employees. In order make more cash out when lifted, conducts positive push up price, thus damaging interests shareholders.