Research On The Earnings Management Of China's Listed Companies With Meager Profits

According to the China Securities Depository and Clearing Corporation disclosed, as of the end of December 2015, the number of investors in the stock market has reached 99,105,300, of which 98,821,500 natural, non-natural persons 283 800. But it is worth noting that, with respect to small investors showed the enthusiasm, the overall health of listed companies are showing a downward trend. Because of China's securities market supervision system and other laws and regulations is not perfect, coupled with increasingly fierce competition among enterprises, there is a special market context and information symmetry of the problem, some of the corporate management for a variety of motives, the use of earnings management to report earnings figures adjusted tend to pass on the outside of some good information or conceal adverse information,to some extent hurt the interests of small investors. Earnings Management long time, but the study focused on the first listed company losses the company was special treatment, placement companies, and more for large sample empirical research data. In order to avoid regulation and to improve the image of the needs of the market, especially domestic listed companies listed on widespread profit earnings management behavior. Three listed companies profit paper, literature research and case studies combined approach to accounting earnings just crossed the breakeven point for the study of the emergence of the phenomenon of the company's profit earnings information authenticity analysis, hoping rich earnings management related theory, enable listed companies to regulate their own behavior, information users to have a better understanding, to make more rational judgments.Specific research ideas are as follows: The first part introduces the research background,the significance of the research results conducted and summarized, presented research content and methods described herein. The second part of the profit and earnings management of listed companies definition, combing the basic theory and theoretical basis for earnings management,as well as a case study the theory behind the preparation. The third part analyzes three characteristics listed companies profit, and its motives and means of earnings management analysis to compare the differences between the general public companies. The fourth part is to select ROE performance of the three companies have different target company. The first target company AB company whose ROE profit mainly to its annual phenomenon occurs after a huge loss; the second target company CD Company, its ROE mainly for the five-year observationperiod selected It has been in the low-profit status; the third target company EF company, ROE mainly for the five-year observation period in the selected there have been cases of alternating positive and negative. Combined with three outliers target company appears to make it possible to use the analysis of earnings management tools and methods to explore the motivation of earnings management. The fifth part is related conclusions drawn by the case summary,constructive suggestions.