Research On Earnings Management In ’Hat Removal’ Process Of *ST Company

With the implementation of the*ST system in Chinese Securities Market,more and more managements of*ST companies conduct earnings management driven by the motivation to maintain their listing qualifications.However,if earnings management is used excessively,the information disclosed by*ST companies will not reflect the real business conditions of the company,infringe on the rights and interests of stakeholders,and may even affect the management’s business decisions.For*ST companies with different industries and different characteristics,the management will use different means and bring different economic effects based on different motivations when conducting earnings management.Therefore,this paper selects*ST Anmei as the research obj ect,which has lost again after ’removing hat’ in coal mining and washing industry,and studies the case of successful ’removing hat’ by earnings management tools.This paper follows the research framework of ’Present Situation,Specific Behavior,Inspiration Suggestion’.Firstly,it expounds the research background and significance,summarizes the research status at home and abroad,defines the concept of earnings management and introduces the relevant theoretical foundations.Secondly,this paper analyzes the earnings management status of the 17 listed companies that have successfully ’removed the chat’ in the domestic A-share markets in 2019.Thirdly,from the asp ects of performance attribution information,means of earnings management,motivation and economic effects,this part deeply analyze the earnings management of*ST Anmei management.Through the analysis of the performance attribution information disclosed by*ST Anmei in 2017 and 2018,it is found that the management’s performance attribution is unreasonable and tends to self-protect and promote.Through further analysis of the unreasonable performance attribution,it is found that the earnings management tools used by the management included provision and reversal of asset impairment,disposal of non-current assets,debt restructuring,government subsidies and related transactions.The management carries out earnings management driven by the motivation to maintain listing eligibility,obtain higher compensation,political motivation and financing motivation.However,the economic effect of earnings management is negligible,and it only maintains the listing qualification and does not really improve the operating situation of*ST anmei.Finally,through the analysis of*ST Anmei’s ’hat removal’ process,the corresponding enlightenment is summarized,and suggestions are put forward for*ST company management,audit supervision and supervision departments:*ST company management should focus on their own business,improve executive incentive system and actively broaden financing channels;audit supervision should strengthen the review of non-recurring profit and loss items and ensure the independence of external audit institutions;the regulatory authorities should combine performance attribution and financial data to identify the operating conditions of*ST companies,and require the enterprise management to provide evidence for significant performance attribution.Through this study,on the one hand,it attempts to provide suggestions for*ST companies to successfully get rid of delisting risk warning;on the other hand,it is hoped to provide some experience and enlightenment for the audit institutions and supervision departments to identify the real operating conditions of*ST companies,so as to improve the external supervision quality of*ST companies.