Abstract: As the main body of corporate decision-making, managers′ behavior and decision-making inevitably have the interdependence of the same group. In earnings management decision-making, corporate executives may have the tendency to keep their own behavior consistent with that of the same group.Based on the data of A-share listed companies in China from 2012 to 2017, this paper uses Monte Carlo simulation to construct a cohort group based on analysts′ common concern, uses “cohort of cohorts” as a tool variable to identify the linear mean structural model, and uses conditional variance identification method to measure the multiplier effect of earnings management cohort effect.The results confirm that the earnings management decision-making of listed companies in China has the same group effect, but it has the asymmetry of direction, which is significantly affected by the upward earnings management of the same group companies, but not by the downward earnings management of the same group companies. Therefore, regulators should pay attention to the spillover effect of earnings management group effect, especially the upward earnings management behavior of companies.

Key words: peer effects, earnings management, Common Analyst-Based Method, Conditional Variance, asymmetry