Research On Earnings Management Preference Of Special Processing Company

Through observing the countries with more developed capital market, it is not difficult to find that the accounting research on listing corporations, and the entire capital market has been a very important issue. And in recent years, the research on earnings management has been more and more valued by the accounting theorists.Despite widespread earnings management behavior existed in the global stock market listed companies, because of the difference of the degree of development of capital market, overseas studies on this phenomenon has more than 30 years of experience, which is earlier than in our country. To observe China’s capital market, we can see that the emergence of small plates makes the threshold to enter the gem makes lower. The number of listing Corporation is increasing year by year, with the implementation of a series of policy mechanism and the bold experiment, research significance of the issue of earnings management also has been highlighted. Earnings management has two sides. On the one hand, earnings management is exist in the framework of accounting standard, and from this perspective, it is reasonable. On the other hand, excessive earnings management reflects a distortion of accounting information, it will be harmful to the reasonable allocation of resources and development of capital market. ST company or *ST company is a special kind of listing Corporation in the stock market of our country, the earnings management behavior also has certain representative. Therefore, we choose the successful "pick hat" or "pick * ST companies as research object, study the earnings management preferences of them, in order to give a reference for the accounting information users to make decisions, and further to provide a theoretical basis for the securities regulatory departments to improve the market mechanism.In this paper, firstly we introduced delisting and ST system and the establishment of the special treatment system in China; secondly we elaborated the existence and methods of earnings management, described the connotation of earnings management, the game process of "pick hat" or "pick* " special treated companies in the year before recovery to former level transaction status, and the methods of earnings management. Then we came to the main part, namely empirical test and analysis, in this paper we choose successful "pick hat" or "pick*" special treated companies in July 2013 to 2015 as the research samples, respectively studied earnings management behavior exists and earnings management methods preference test and analysis of the sample companies. After establishing the research model and putting forward the hypothesis, we used statistical software Eviews 7 and SPSS 20.0 to make component analysis and regression analysis. The research conclusion is:earnings management behavior exists in "pick hat" or "pick* " special treated companies in the year before they recovered to previous transaction status, and there is preference in behavior of earnings management. Finally, on the basis of theory analysis and empirical test, this paper puts forward some suggestions from strengthening market supervision and punishment, and improving ST company its own governance two angles for improvement, in order to promote the orderly operation of the securities market.