Research On Earnings Management Of JL Companies Based On The Perspective Of Performance Attribution

In recent years,the issue of earnings management has been a hot topic in the field of accounting,and has received extensive attention from all walks of life.The performance information in the annual report of the enterprise is mainly divided into financial information and non-financial information.Financial information mainly refers to profit-based accounting data,and enterprises can manipulate profits through earnings management,which can be tested by the overall accrual profit method.Non-financial information is disclosed in the "Management Discussion and Analysis" section of the company’s annual report and can be analyzed through a performance attribution lens.China’s securities market implements a special treatment system(referred to as the ST system).ST listed enterprises are the focus of regulatory supervision,and such enterprises are facing the risk of delisting and are high-incidence enterprises engaged in earnings management.Domestic and foreign scholars have rich research results on the means and consequences of performance attribution and earnings management,but there is still a lack of research results on earnings management from the perspective of performance attribution.This thesis studies earnings management from the perspective of performance attribution and JL Corporation as an example.JL was labeled ST after losing money for two consecutive years from 2016 to 2017,and in 2018 it successfully preserved its shell through earnings management initiatives.For JL Company,based on the basic situation and performance attribution analysis,it was found that there were problems with the company’s performance in 2017 and 2018 and there was an unreasonable phenomenon in performance attribution,which questioned whether the company had earnings management behavior.Then,based on the total accrued profit model and the mean recovery accrual profit model,JL Company is quantitatively analyzed,and JL Company’s earnings management behavior is determined,and the specific means,earnings management motivation and subsequent impact of earnings management of JL Company are explained.Finally,JL Company earnings management behavior is proposed to take corresponding countermeasures.After the study,it was concluded that earnings management can help enterprises maintain their listing qualifications by manipulating profits,but it has no effect on the long-term development of enterprises and will damage the development of the capital market.In order to reduce the phenomenon of earnings management of ST enterprises,this article finally puts forward four suggestions.The first is to optimize the development path of the enterprise;Then there is the improvement of accounting standards;This is followed by improved internal governance;Finally,external oversight should be strengthened.