The Research On Earning Management Used By Listed Company To Flee From Special Treatment

Earnings management currently has two authoritative definition,from each of them, we can see that, in earnings management, management authorities is the main body, external reporting of earnings information for the object, aim at maximum its own guidelines within the scope allowed integrated use of accounting or non-accounting control and adjustment of the means of accounting income.Earnings management issues for a long time, has long been an important branch of accounting research. it have been researched in Europe and America for long time, and achieved considerable results. China is in the early stages of market economy Currently, earnings management is very common, almost in every enterprise. Financial statements of earnings management help enterprises at the same time, also led to a distortion of enterprise information which affect investors and other relevant information on the use of enterprise information. In order to enhance the credibility of the enterprise information and a good investment environment in China, our scholars are also committed to research on earnings management and research issues at the same time, to address the problem in order to maintain the orderly development of the Socialist market economy in China.ST system is an unique system of management of the listed companies in china, its purpose is through the conditions of the poor performance and reach a certain method of naming of ST listed companies, to reveal to investors that the company’s financial situation and to remind investors, reasonable investments in investment activity in the note. However, as the ST system is flawed, a non-listed companies may gain greater benefits, therefore, many ST companies through a variety of means to achieve fleement. And profit by way of raising revenue reducing costs is a long-term process, it is difficult to quickly reach the target in its management, so a lot of earnings management of listed companies through to whitewash your financial statements and profit, so as to achieve fleement effect. Starting with this article it was from this point, by means of case analysis of ST SHANJIAO, and gives the means of other representatives of some listed companies, further confirmed the mostly ST companies earnings management to achieve fleement, and concludes with some suggestions and advice.The full text is divided into six chapters, chapters outline is as follows:Chapter1, introduction. This chapter first analyzes the behavior of earnings management in listed companies in China,which is widespread, more common in ST company. ST companies earnings management whose main objective is fleement. This chapter analyses the current situation of domestic and foreign research on earnings management, points out that because of a late development of the market economy in China, the earnings management research is behind abroad. Analyze the domestic study on earnings management motivations. Research thinking and method of this article, and pointed out that the lack of innovation.Chapter2,The ST company earnings management theory. This chapter describes in detail of ST system, influence on listed companies and other related content. Describe the concepts of earnings management, including connotation and condition. Features of the analysis of ST company earnings management, namely: more, do less resistance, contact with accounting fraud for easy identification. This knowledge through the introduction of this chapter is going to make bedding for content discussed later.Chapter3, The backgrounds of ST company earnings management systems. In this chapter, four categories of analysis of ST company earnings management motivations:motivation, reward motivation, financing motivation as well as politically motivated. Primary means of analysis of ST company earnings management:using accounting policies, the use of related party transactions, asset restructuring, use of Government support. Through analysis of this chapter, overall background laid the tone of the article, and as a means of back analysis in the case of listed companies providing theoretical support.The fourth chapter, mainly using the case study of ST SHANJIAO approach to explain the topic of the article. From ST SHANJIAO recently three years of annual report in the extraction has business income, business cost, Government grants and other groups of data of2010, especially the fourth quarter, the data occurs large of change, Due to the analysis of a single company does not have compelling, in the next paragraph, other examples of companies are cited to justify this conclusion.The fifth chapter, ST company management suggestions. General, in China exists with this comparison flood of earnings management phenomenon, main is regulatory sector dereliction of cause.as a result, from four a area made has recommendations:perfect enterprise accounting guidelines, strengthening associated trading disclosure and regulatory, strengthening and perfect audit supervision and established reasonable of back city mechanism.This article based on research, summarizes of the earnings management of ST companies commonly used. And through case analysis of ST company for them to use and proof the topic that ST companies earnings management for fleement. The innovation is made to monitor the behavior of earnings management of the listed companies be similar with the Sarbanes-Oxley Act to provide support on accounting standards, to regulate the behavior of earnings management of the listed companies.As my study of accounting theory is not in-depth enough, there may be lack of expertise in the papers, which I will learn and develop in the future.