Control of earning is the control or adjustment of the accounting profit in coporate's external financial reports by the management, based on accounting principles and aiming to maximize the corporate's profit. However, with the surging of the public coporates in China, the problem of unfair accounting is worsening. Control of earning has been the key factor that hinders healthy development of China's stock market. Thus it is of great meaning to analyze its motives, approaches, protection and solutions.
This article starts from the definition of control of earning, puts forward reasonable suggestions on regulation and governance of public coporates' earning control by analyzing its motives, expression and implication, and elobrates the approaches for investors and debt holders to identify different controls of earning.