Empirical Study On The Profit Manipulation Of The Listed Companies In Terms Of The New Accounting Standards

The financial report provides the information investors and the general public such an important basis for decision-making, but the current listed companies providing false financial information and the acts of manipulation of profits are widespread, seriously affecting the health of China's capital market development. The owners of enterprises to benefit from the enterprise, depends largely on corporate accounting profits. Therefore, they will through artificially manipulating accounting data to make their own profit, causing financial information with the authenticity of the report. In order to prevent manipulation of corporate accounting information, the state general corporate accounting standards adopted to restrict businesses the occurrence of such acts. Therefore, the Ministry of Finance in China on February 15, 2006 issued 39 new enterprise accounting standards, and January 1, 2007 in the first of a listed company. The strengthening of the new accounting standards for investors and the general public to provide useful information for decision-making quality requirements, with the international practice to achieve further convergence. Given the incomplete accounting standards and lag, accounting standards it is impossible to restrict enterprise profit manipulation. Corporate manipulation of accounting information in a certain period of time will still continue to exist.This paper is in such a context, the adoption of standards and the method of combining empirical Study, implementation of new accounting standards for listed companies will profit how manipulation of the impact analysis to find out what caused listed companies profit manipulation accounting projects, and implementation of new guidelines listed companies profit manipulation is expanded or narrowed to empirical analysis. The purpose of this study is to enhance profits of listed companies to prevent acts of profit manipulation, and promote the new accounting standards further improved.On the above issues, the paper started on the following: (1) In accordance with profits of listed companies manipulated status of the listed companies of manipulating profit motive and means were analyzed. (2) For the acts of listed companies profits manipulation, identification methods are provided to the user of information. (3) The implementation of the new accounting standards expand and shrink profits of listed companies manipulated accounting item analysis and study. (4) Analysis of the empirical method, demonstrating the implementation of the new accounting standards can contain China's listed companies profit manipulation. (3) and (4) of this paper is the focus of the study. The new accounting standards on the implementation of a listed company profits have an impact on the accounting manipulation many items, such as impairment of assets, debt restructuring, non-monetary transactions, the shares paid, intangible assets and borrowing costs. External financial reports of listed companies is the cash flow and profit from the total accrual of profits, should also include non-profit or manipulation of total accruals and manipulation of the accrued profits. Empirical research in selected 190 listed companies as a sample, using Jones model that corporate profits manipulation samples for analysis. The results show that the implementation of the new accounting standards did not contain the profits of listed companies manipulation. (5) In accordance with profits of listed companies manipulated the normative acts and empirical research findings, made profits of listed companies to prevent manipulation of policy recommendations.Based on the above listed companies on the profit manipulation of the content and methods, the paper come to the following conclusions:(1)Loss of the company in the event of loss of the year, there was a significant reduction in the accounting treatment of profits, and in the implementation of the new accounting standards for 2007, but there were significant increases in the accounting treatment of profits. According to China's "Company Law" provides that a listed company losses for two consecutive years will be special treatment. Therefore, the majority of listed companies for special treatment to avoid being affected by the image in the stock market, it will reduce the annual deficit in the surplus for the future and create conditions for turning losses to profits(2) With the loss of meager profit companies in the implementation of the new accounting standards still exist after the profit manipulation, and manipulation of the total profits accrued over the implementation of the old accounting standards are slightly higher than trend.(3)The highly profitable company, in the implementation of both old and new accounting standards are not there are significant profit manipulation, that China's high-profit company is still good business ability.(4)Samples from the research results also found that the implementation of the new accounting standards, some 62 percent of the listed companies of manipulating profit should be higher than that of the old standards, the implementation of the manipulation of accruals. Instead of the implementation of new accounting standards to increase the strength of the profit manipulation, but it is only two years of statistical data, and some of the new criteria for the new provisions may also listed on the company's profit level certainly have an impact.(5)The provisions of the new accounting standards in a number of areas to contain the listed company profits, but still profits to the listed companies manipulated to provide a certain amount of space. The implementation of new accounting standards and has not been fundamentally resolved in China's listed companies profit-fixing issue. China's listed companies how to guard against manipulation of profits, the authors recommend the following responses:(1)To strengthen the new enterprise accounting principles and standards. Through the impairment of assets, restructuring of debts, intangible assets, the fair value of the use of specific standards be amended and improved to achieve.(2)The transformation of government functions, and strengthen the supervision of the profit manipulation. To eliminate the state-controlled listed companies to be in the business of "political link" color; for government officials to establish a scientific evaluation mechanism for fighting corruption and strengthening efforts to protect a fair, open and fair market environment.(3)Improve their corporate governance structure and internal audit system. Improve their corporate governance structure, we must first improve the system of property rights, enhance shareholder participation in monitoring the motivation and ability. Improve internal auditing system to ensure the independence of the internal audit, independent directors and give full play to the supervisory role of the board of supervisors, to prevent manipulation of a listed company profits will have a positive effect.(4)Registered accountants improve auditing system to ensure the authenticity of the external audit. Audit independence is a registered accountant to audit the work of the soul and life, which is a listed company profits to prevent manipulation of key enhance the accountant to audit the legal system building.(5)Improved disclosure of accounting information system. China's Ministry of Finance and the SFC should strengthen its management functions, and strengthen the disclosure of false information on the listed penalties.(6)Perfect for evaluating the performance of listed companies and evaluation system. Changes in net assets yield indicators as a measure of the performance of listed companies only indicators.