The Research On ST Company’s Earnings Management Issues Under The Background Of Delisting System Changes

In 2003,the delisting risk warning system was introduced.When a listed company performs poorly and its stock meets the risk of termination of listing,the stock exchange will implement special handling on the company’s stock trading.At the beginning of the implementation of the system,ST companies need to meet the requirements of net profit and net profit after deducting non recurring profit and loss.After that,the 2012 version of the listing rules will be released to remove non-deductions.The standard of recurring profit and loss.The change in this condition makes the company’s earnings management more convenient.At the end of 2020,China’s new version of the listing rules will come into effect,and the listing rules will further refine the delisting risk warning standards for listed companies.Profits and losses are again within the scope of investigation.Policy changes will change the behavior of companies,and ST companies that face the pressure of suspension of listing or delisting will also change their earnings management methods.This article selects Shanxi Coking and Shanxi Coal International as the case companies.These two companies were subject to delisting risk warnings around 2012,and different listing rules apply.The main difference lies in whether the non-recurring gains and losses are falling apart.Within the scope of the investigation,by identifying the differences in the earnings management methods of the two case companies,the impact of policy changes on the company’s earnings management methods was analyzed.The study found that due to the existence of non-recurring profit and loss standards,the focus of ST companies’ earnings management has changed.The amount of earnings management manipulation is relatively dispersed.While the company’s earnings management methods are subject to certain restrictions,the company has a tendency to increase recurring gains and losses and use deferred income tax adjustments in the selection of earnings management methods.This article has enriched the case papers of earnings management to a certain extent.