Case Analysis Of Earnings Management In Related Transactions Of Listed Companies In My Country

With the continuous development of China’s economy,more and more companies choose to go public to further expand their operations.In this process,earnings management of listed companies has gradually been paid attention to.Earnings management of affiliated transactions is a kind of earnings management mainly by means of affiliated transactions.Affiliated transaction itself and earnings management are neutral words.Affiliated transaction can help enterprises reduce costs and increase profits.But because of the unique background of Listed Companies in China,affiliated transaction has not only played a role in improving profits,but also played a role in manipulating earnings information,managing earnings and whitewashing earnings.At present,China’s earnings management plays a role in whitewashing its earnings.Many listed companies use related party transactions for earnings management.Earnings management is an act of adjusting earnings information of enterprises within the scope permitted by laws and regulations,which is essentially different from accounting fraud.Frequent and excessive use of earnings management will affect the normal operation of companies and damage the legitimate rights and interests of small and mediumsized investors.Under the influence of the unique background of listed companies and human relations in China,which is not easy to be detected by regulators.This paper mainly uses the method of combining system analysis and case analysis to study the earnings management of affiliated transactions.Firstly,it introduces the basic theory,then analyses the financial situation of * ST Gas in 2016,evaluates the earnings management behavior of affiliated transactions where it may exist,and then carries on the listed companies of coal mining and processing industry in China from 2014 to 2016 through the quantitative analysis of the local method.This paper mainly uses the modified Jones model and one-way ANOVA to further determine the impact of different types of relatedparty transactions on earnings management,and gives the local method to identify the earnings management of related-party transactions.Finally,it puts forward corresponding suggestions on the supervision of earnings management of Listed Companies in related-party transactions.