The Study Of Earnings Management With Non-Recurring Gains And Losses

In2007, due to the stir the stock market, setting off a wave of" hot stocks ",from the students to the old all join investment securities, which also indicates that the concept of investment attracting more and more people’s attention. Ordinary investors make investment decisions generally with financial information disclosed by listed companies, based on rational analysis followed. Thus, It is important to make sure company’s accounting information true and objectively reflecting the Company’s operations. March2014,In the Shenzhen Stock Exchange, a "rainbow refinement" of the two stock management has been criticized notification from the exchange, because the company’s2013semi-annual report and the quarterly non-recurring items error correction is not timely, and the error is relatively large amounts, is of importance Non-recurring items, the listed company announced the financial report plays a very important role, it can reveal the status of the Company constitutes a profitable, thus contributing to users of financial statements to understand the company’s business situation. Moreover, China’s non-recurring gains and losses although disclosure system in continuous improvement, but there are still problems, so many listed companies can take advantage of loopholes in the non-recurring earnings management.Aiming at this situation, a strong motivation for earnings management company ST special treatment before being withdrawn earnings management conducted a case study. First the basic concepts of the theory expounded the characteristics of non-recurring gains and earnings management and the presence of, on the basis of theory, for the special company specific analysis of ST, ST companies use the comments made by non-recurring gains and losses and the impact on the way. In the case part, we selected the ST Baolong companies using non-recurring gains and losses has the typical characteristics of a before and after comparison of earnings management and financial indicators, to evaluate the impact of its. The results show that, ST companies haveincentives to manage earnings in the face delisting crisis, but this is only an expedient policy of earnings management and can not not have a sustained positive impact on the company’s operating condition, can not fundamentally solve the ST companies face financial dilemma. Finally, according to study results presented specific measures for ST companies use non-recurring earnings management.