Study On The Influence Of Listed Company Earnings Management In Debt Restructuring Standard

"Accounting Standards for Business Enterprises---Debt Restructuring" is a specificaccounting standards promulgated by the Ministry of finance for the behavior of the debtrestructuring of listed companies,which experienced three stages of development:promulgated in1998, revised in2001, revised again in2006. these three changes has twocore issues about the recognition and measurement of properties of the gain on debtrestructuring.The newly issued debt restructuring guidelines occur two changes:First, the "fairvalue" measurement mode had been introducted, which replaces the old criteria of "bookvalue". Second, the gain on debt restructuring are included in "operating income" ratherthan includ in the "capital surplus". Historical data show that the debt restructuringguidelines in1998developed to promote the earnings management of listed companies,the new debt restructuring guidelines is similary to the guidelines promulgated in early1998It is likely once again to become a way for listed company to inflat assets and profit,in the end this is a trend in the behavior with the international market, or making thesame mistakes? For this reason, this article research the effection on earningsmanagement behavior for the2006debt restructuring guidelines change.This paper use the method of combining normative and empirical research, whichcollect the relevant data of the Shanghai and Shenzhen A-share2005to2010thecompany’s annual report, select the gain on debt restructuring/average total assets as thedependent variable to show the direct characterization of the earnings management oflisted companies level, select the profitability, debt capacity, governance structures,regulatory policy, audit and supervision of five aspects of indicators as explanatoryvariables,,adoopt descriptive statistics and multiple linear regression model to researchearnings management behavior of listed companies,analyze whether the listed companyearnings management behavior can be suppressed and prevented after r theimplementation of the new standards.Studies have shown that the number of listed companies which use debtrestructuring to increase profitability, slow down and avoid delisting behavior is greatlyincreased after the revision of debt restructuring guidlines, which brought some difficultiessecurities to market regulation. But as the maturity of China’s capital marketsand the improvement of regulatory policy, debt restructuring behavior becomes randomand losses motivation weakened.Finally, the author put forward a number of proposals on the basis of empiricalresearch, including strictly to regulate the debt restructuring behavior from the system, toimprove the recognition and disclosure of the debt restructuring and the securities marketpolicy, and to improve external oversight mechanisms to promote the development ofintermediary institutions, to facilitat the implementation of the debt restructuring, tostrengthen the company’s own building, to improve the internal governance structure.This study has some sense for the formulation and revision of accounting standards,a certain reference value for investment in securities market regulation and investmentrationality.