Earnings management mainly has the following meanings:

First of all, the main body of earnings management is the enterprise management authority, which includes managers and the board of directors.

Second, the object of earnings management is the earnings information (accounting income) reported by enterprises.

Thirdly, the method of earnings management is to use accounting and non-accounting methods to control and adjust accounting income within the scope permitted by generally accepted accounting standards, which mainly includes the selection of accounting policies, the management of accruals, the change of trading time and the creation of transactions.

Fourth, the purpose of earnings management is to maximize the interests of the subjects of earnings management. It also includes the maximization of managers' own interests and the maximization of shareholders' interests represented by board members.

To sum up, earnings management is the behavior of enterprise management authorities to control or adjust the accounting income information reported by enterprises on the basis of following generally accepted accounting standards (or accounting standards) in order to maximize the main interests.