Research On Earnings Management In Corporate Divestiture

Corporate divestiture is an important way of assets reorganizations. The number and the size of corporate divestiture are continuing to grow both in foreign or domestic. Corporate divestiture is bound to relate to the surplus, especially in the past two years because of the changing environment, more and more enterprises to take advantage of corporate divestiture for earnings management. Corporate divestiture enriches the content of earnings management. Therefore, they are worthy of in-depth study, which are status of earnings management, existence of the problems, and the ways to solve these problems. They are also the main contents of this study. Full text is divided into seven chapters. Through theoretical argument and empirical demonstration of research methods and ask questions - analysis of problem - to solve the problem of research ideas, this article analyze the above arguments in detail.The research results and conclusions as following:Firstly, the article proposes the definition of earnings management of corporate divestiture. This is the theoretical starting point for research, as well as the basis of research projects. Combination of earnings management hypothesis, the article carried out the three main types of earnings management motivations, that is, the motive of debt contracts, managers reward motivation and capital markets motivation.Secondly, the article analyzes the status of earnings management in corporate divestiture. a comprehensive analysis of asset stripping at quo, as well as the impact of asset stripping of a surplus on the basis of the asset stripping of the in the current situation analysis in detail. In corporate divestiture, earnings management motivations are prevalent, they are debt contracts, managers reward motivation and capital markets motivation, and the motivations are different in each sector. In addition, the sale of assets is a general way of earnings management, and the way of related party transactions is one of the important content.Once again, the article produces the problems of earnings management in corporate divestiture. The main questions are deliberately manipulated earnings and divest the accounting treatment. At the same time, this part analyzes the reasons for the existence of the problems, from both inside and outside the enterprise.Finally, the article puts forward solutions to the problems. The external channels include construction of capital market mechanisms, institution-building intermediaries, as well as improvement of accounting standards. The internal channels include the strengthening of internal governance and improve the initiative of corporate divestiture.