A Positive Study On Earnings Management In ST Companies Which Carried Out The New Standard Of Debt Restructuring

As the stock market has become more sophisticated and increasingly is a significant role of economy in our country, the listed company's external financial reporting as provided by investors, government regulators and other stakeholders is an important basis for decision-making. In order to attract investors better or achieve the purpose of financing, the listed companies, especially those facing the loss or consecutive losses of ones, began earnings management, which not only reduces the reliability of financial reporting information, but also seriously affects the optimal allocation of resources in the capital market functions. So it becomes an important factor as an obstacle to the development of China's stock market. Debt restructuring is one common means of reducing losses for most listed company, so under the opportunities of 2006 new debt restructuring standards, whether ST companies used the means to achieve profitability or not? By theoretical analysis and empirical research methods combined with the new debt restructuring guidelines for the conduct of ST companies' earnings management argument. On this basis, the paper has made comments and suggestions of monitoring ST companies and earnings management based on guidelines for debt restructuring, helping to improve our market regulation and accounting standards, thus constrained earnings management behavior. The parts of the articles as follows:ChapterⅠ, Introduction. This chapter describes the motivation of this study, research methods, research framework and the main innovation points and shortcomings.ChapterⅡ, The relevant literature review. This chapter is introduced from two aspects of earnings management and debt restructuring which were reviewed. Earnings management is introduced including the different basic concepts of earnings management at home and abroad are classified and summed, the main motive for earnings management and the main ways of earnings management. As earnings management theorists on the starting point is different, its definition is different. This paper argues that earnings management is a "permitted in the accounting standards in the enterprise within the surplus consciously pull the book to the desired level of an act.' Main aspects of debt restructuring are introduced about the theory and empirical research of the debt restructuring in domestic and foreign those were summarized. Based on theoretical research, debt restructuring focuses on economics, accounting, and empirical research has focused on the relationship between earnings management and debt restructuring.ChapterⅢ, the relevant laws and regulations and theory. From the two aspects of the rules and regulations and relevant theories, this chapter forces on the theoretical analysis of three key words:"ST Company", "earnings management" and "debt restructuring guidelines". The current ST system in China, the main form of earnings management and the development process of the debt criterion are all described in details, the conclusions of this paper are provided a strong theoretical support.ChapterⅣ, Empirical Research on Debt restructuring and Earnings Management in ST companies. Through this chapter, the companies' behaviors of debt restructuring, operating results and operating income and other indicators of the empirical analysis confirms the theoretical content of the study and obtained preliminary conclusions:debt restructuring by the new guidelines in ST companies were related the earnings management behavior clearly.ChapterⅤ, conclusions and recommendations. In this chapter, the theoretical and empirical research findings are summarized and some suggestions of the market regulatory system and improvement of debt restructuring guidelines are given.