Study On The Influence Of "Troubled Debt Restructuring" Standard's Change To Earnings Management Of Listed Companies

With the progress and development of market economy,the competition between enterprises become intense,some enterprises may suffer financial problems for poor management or other reasons.When the debtor serious financial problems that can not return due debts,the creditor may apply for bankruptcy of the debtor in accordance with the law,but the bankruptcy procedure is often time-consuming.Thus have given rise to debt restructuring to ease the debt dispute between creditors and debtors.The main purpose of "Troubled Debt Restructuring" standard is to resolve the accounting and information disclosure issues during the debt restructuring.The generation,development and change of the accounting standards are closely linked with earnings management.Debt restructuring standard of our country from the generation to the present has gone through two changes of revision process.It was first promulgated in 1998,the guidelines was almost same with international standards,but because of the market of that time is still inadequate,resulting in a large number of listed companies to use debt restructuring guidelines to manage earnings.Ministry of Finance carried out the first revision of the guidelines in 2001,the adjustment was made according to China's specific circumstances at the time.To some extent,it containments the behavior of adjust earnings,but the inadequacies are obvious.In 2006,Ministry of Finance put out second amendment,the specific provisions of the new standards is basically the same with standards early in 1998.The main purpose of this article is to study whether the return of debt restructuring guidelines to reproduce the tide of earnings management.The significance of this paper is to provide evidence of manufacturing enterprises to use debt restructuring for earnings management for stakeholders and criteria development sector.This paper shows the study on the influence of "Troubled Debt Restructuring"standard's change to earnings management of listed companies,the content of the study include the following six areas:The first chapter is an introduction,including the background,purpose and meaning of the topic,the thought and frameworks,methods of the research;Chapter 2 is the reviews of literature;Chapter 3 is the relationship of the change of the debt restructuring standard with earnings management,this chapter analyzes the background and content of every debt restructuring guidelines,and the influence to earning management of listed companies,laid the theoretical basis of the article.Chapter 4 analyzes the superiority of the new debt restructuring standards and its role in promoting the earning management.Chapter 5 is a descriptive statistical analysis and case studies,proved that the new debt restructuring standard increase the likelihood of listed companies to mange earnings.Chapter 6 is conclusions and recommendations.The main contribution of this paper manifested in the following aspects.First,using a combination of methods of statistical analysis and case studies to get research findings help to understand the motive and method of earning management;Second,select the span of eight-year market data as the basis for analysis,to make the result of the study more convincing;Third,provide evidence of business that use debt restructuring to manage earning for investors,creditors,government and other stakeholders and regulators,help the standard setters and securities regulators to accurately identify vulnerabilities,and revise and improve standards timely.The lack of this paper is:First,the difficulty of data collection and processing,may lead to individual data are biased due to personal reason.Second,the boundary of the Listed company's debt restructuring which is designed to improve the results of operations or earnings management is difficult to ascertain,so the judgments made in this article has a certain subjective.