Study On Earnings Management With Non-Recurring Profit And Loss Of Listed Corporations In China

Non-recurring gains and losses is an important indicator of the information disclosed in the capital markets, one-time non-recurring gains and losses, the occasional feature so that investors can not forecast the future prospects for the development of the enterprise through its. Today, profit targets is one of the key indicators used to measure the profitability of the business and operating level, and it is therefore the majority of investors, creditors and the company managers are most concerned about the indicators. However, to be able to truly reflect the continued viability of the enterprise must be to eliminate the impact of non-recurring gains and losses. If the use of non-recurring gains and losses listed companies to manipulate profits, which will seriously affect the right to read and understand financial statements, one became a serious obstacle to the development of China’s securities market toward a healthy direction. Since1999, although the Ministry of Finance, the SFC have released a series of specifications for non-recurring gains and losses, but the non-recurring gains and losses are not standardized disclosure, listed companies in non-recurring gains and losses to profitability, the ST class company to use its "Reaching for the Stars" Uncap "and not much changed. Therefore, to correctly understand the indicator of the non-recurring gains and losses for investors correctly understand and grasp the continued profitability of listed companies, in order to make scientific and rational investment decisions of great significance; non-recurring items as important indicators of regulatory and correct regulate the disclosure of non-recurring gains and losses, to improve the quality of information disclosure, will also play an important role for the protection of the legitimate rights and interests of investors.The paper first reviews the literature of the domestic and international non-recurring gains and losses, and then starting from the concept of comparative analysis of domestic and international definition of the content of non-recurring gains and losses, and disclosure requirements, and describes the evolution of the disclosure policy of non-recurring gains and losses, and sort outthe concept of earnings management, motivation, and measurement methods. Theory based on data from2009to2011, China’s overall annual reports of listed companies to statistics, analysis of the disclosure of non-recurring gains and losses, followed by non-recurring gains and losses on the Shanghai Stock Exchange listed companies net profit more in-depth research. Then through collecting the Shanghai a-share listed companies accounted for the proportion of profits and losses of the current central net large companies sample data analysis, it is concluded that the current profits and losses of the specific project appear most frequently five subjects, through the case analysis of the specific way for earnings management.Studies have shown that, for the listed companies in the whole of the year2011, the presence of non-recurring gains and losses and the overall performance of the listed companies is low quality. Compared with previous years, the listed company to take advantage of the phenomenon of the "turnaround" of non-recurring gains and losses still exist, some of the listed companies in poor profitability, stronger motivation for the use of non-recurring gains and losses to manage earnings, loss companies use improved provision for impairment and estimated liabilities "big bath" phenomenon.