Legal Study Of Listed Companies' Earning Manipulation

With the constant development of stock market, the operate way of manipulating the market and sensationalizing the hotspots has been replaced by the "value oriented" investing mode. More and more investors take cautious attitude towards those low profit listed company, and pay close attention to companies' inherent value-manage conditions and profit making ability. With this trend, listed companies begin to readjust the profit to satisfy that kind of request. Those kinds of earning manipulations will affect the listed companies' constant profit making ability, so as the investor's judgments. Those will violate the shareholder's profits eventually. Give better protection to the shareholders, is the center of the administrators' work, and the focus of law study. So, in order to help the shareholders to discriminate the trap of earning manipulation, on the basis of the effective law, this article will analyze the act of earning manipulation in all around way from the angle of shareholders' protection. Excluding the preface, this article divided into five chapters:First, the Meaning of Earning Manipulation. Introducing the background of earning manipulation, and on the basis of this introduction, explain the meaning of earning manipulation from both broad and narrow sense. Ascertain the nature of earning manipulation.Second, the Cause of Earning Manipulation. Introducing the major cause of earning manipulation: satisfy the needs of stock market, maintain the qualification of listed company, and other causes. Analyze the internal relationship between the act and motive from the angle of reality.Third, Effect on the Listed Company and the Stock Market. Analyze the effect of earning manipulation from the angle of violate the shareholders' profit and spoil the allocation of resources. Forth, the Way of Earning Manipulation, and How to Discriminate the Trap. Analyze the way of earning manipulation: related trade, transfer the expense and deficit, and the others. With the case study, explain the way of discriminating those trap, and reveal the trend of earning manipulation. And at the end of this chapter, provide a alarm system for the investors to estimate the securities' value and evaluate the investing risks.Fifth, Regulating the Earning Manipulation. First of all, addressing the importance of enactment; then analyze the relations between effective enactment and earning manipulation; last, concluding the strategies and proposals to prevent the earning manipulation from four sectors: the forming of law, administrating and regulating, supervising, external assisting.