Research On The Privatization Regression,Performance Commitment And Earnings Management Of Chinese Concept Share

With the continuous improvement of the capital market and the continuous adjustment of domestic listing policy,the return of China’s stock outlook has become a hot topic in recent years.There are obvious differences in the valuation of China’s listed companies at home and abroad.Once China’s listed companies return,they can get several times or even tens of times premium.Based on the particularity of privatization delisting,earnings management has become a common phenomenon in the privatization of Chinese stock companies in order to improve the success rate of return and obtain multiple premiums.Moreover,in recent years,the number and scale of M&A in the capital market have increased,and the "M&A boom" has not been abandoned.Even high valuation,high performance commitment and high premium have become a generally accepted way for enterprises.The role of performance commitment in avoiding risk is gradually weakening,and the negative effect is becoming more and more prominent.In order to achieve high performance commitment,enterprises have strong motivation to carry out earnings management,which also leads to a large part-time goodwill after the end of performance commitment and a sharp decline in corporate performance in the capital market disorder.Most of the returning companies choose backdoor listing,and a few choose IPO.High performance commitment has become the "standard allocation" of the returning companies.Based on the literature review,there are fewer studies on the relationship among the return to privatization,performance commitment and earnings management.Therefore,starting from the return of the prospective companies,the author studies the relationship between the return to privatization and performance commitment,and the relationship between performance commitment and earnings management from the perspective of earnings management,so as to provide new information for relevant research.Based on the theories of information asymmetry,goal setting,signal theory and anchoring effect,this paper firstly analyses the relationship between privatization return and earnings management,performance commitment and earnings management,and studies the motivation,degree of earnings management and ways of earnings management during the period of privatization return and performance commitment.The regression of privatization and performance commitment of China Stock Exchange put forward corresponding measures and research ideas to avoid earnings management.Then through literature research,case study and data research,quantitative and qualitative analysis of the case of mass media.The case analysis includes company introduction,privatization delisting process,VIE demolition,backdoor listing,performance commitment realization process and performance changes after the completion of performance commitment.We can deduce that there is a great earnings management level in the performance of Focus Media by stagnating its performance from the previous high growth rate of 20%on average and reaching the target precisely in the previous two years.Then the author analyzed the motivation of Focus Media earnings management in detail from three stages:privatization delisting,backdoor listing and performance commitment.Then,the degree of earnings management is tested by the revised Jones model.Finally,through the analysis of the case,the author concludes that there are strong motivations for earnings management and earnings management in the return period of privatization and performance commitment of Chinese stock companies.Through the operation of earnings management,companies hurt the rights and interests of small and medium-sized shareholders,disrupt the order of the capital market,and have strong harmfulness.They should evade earnings management during the delisting period of privatization and the performance commitment period.The author puts forward suggestions from four aspects:controlling high premium,introducing non-profit indicators into performance commitment schemes,improving performance commitment schemes,strengthening performance commitment audit and strengthening disclosure system.