Earnings Management Methods and Market Response Strategies of Listed Companies from the Perspective of Financial Governance

Abstract

This article, from the perspective of financial governance, delves deeply into the common means of earnings management for listed companies, including the utilization of accounting policies and estimates, related-party transactions, and non-recurring gains and losses. At the same time, analyze the negative impacts these measures have on the financial market, such as information distortion and distorted resource allocation. Furthermore, market response strategies are proposed, covering aspects such as improving the corporate governance structure, strengthening accounting standards and regulatory systems, enhancing the quality of audit supervision, and intensifying investor education, aiming to provide theoretical support for maintaining the stability of the financial market and promoting the rational allocation of resources.