Earnings Management In "*ST Yuanda"

Earnings management is always a hot issue in the accounting profession.In recent years,with the rapid development of economy,it has gradually become a hot issue in China securities market and even in the capital market.As we all know,corporate earnings information in the company's specific decision-making process and even the specific decision-making investors have played a fundamental role.The surplus information reflects the profitability of an enterprise.Therefore,investors always concern about the earnings information disclosed by listed companies.With the rapid development of the economy,the means of earnings management are increasingly diversified,and its delisting risk is also increasing.In particular,since the implementation of the delisting risk warning system,enterprise managers often intervene even through the manipulation of earnings management on the company's normal business activities.In recent years,in order to avoid delisting for earnings management and to smooth losses,many ST companies choose earnings management.This means that many investors would be affected the investment and even failed to interfere with the normal operation of the capital market environment,making the capital market enterprises cohabitation,reducing the credibility of the enterprise,the capital market caused adverse effects.Therefore,the study of the earnings management of ST companies is more representative.Nowadays,the theoretical research on earnings management is more focused on the related concepts of definition and interpretation about earnings management,or the use of large sample of enterprise earnings management measurement.In this paper,it uses case analysis method study the phenomenon of *ST Yuanda earnings management in-depth.“*ST Yuanda” is the form of shorthand of Fujian Sunnada Communication Listed Company when it is implemented the “delisting risk warning”.This paper adopts this short name on behalf of the company,the related research is carried out in the earnings management behavior during the “delisting risk warning”.From the analysis of the measurement to the earnings management behavior of up to *ST Yuanda,can be further through the nature of the phenomenon.Firstly,the research background and significance,research status at domestic and abroad,the main contents and research methods,and innovations of the article are discussed.Secondly,it summarizes and analysis the basic theory of earnings management,elaborates the earnings management definition,motivation,method,identification method and consequences of excessive earnings management and other related theories.Thirdly,the article based on the related theories of earnings management for the media,to identify the *ST Yuanda's behavior of earnings management,using the experience identification method and model identification method at the same time,further analysis the motivation and the means and consequences analysis,obtains the *ST Yuanda in the year 2015 used a variety of earnings management's means to increase profit in order to achieve their goals,in a short period of time to eliminate the risk of suspension of listing,but in the long term,through the earnings management to enable enterprises to turn into profit and will not have positive effect the profitability and future development of enterprises,the difficulties faced by enterprises still can't be improved.Finally it would give many suggestions from the angles of ST companies,the securities market stability and external supervision.The paper combines the theory with practice to analyze the behavior of earnings management of *ST Yuanda.It would make the content more abundant and complete from theory to practice,from abstract to concrete,and make the article more complete.