A Case Analysis Of The Profit Manipulation In YaTai Industry Company

In recent years,the problem of profit manipulation in listed companies has been paid more and more attention by social opinion,academia and government regulators.The profit manipulation phenomenon exist,so that investors and the company’s trust was shaken.The trust which is the cornerstone of the capital market credit has also been tested,and even directly affect the healthy development of the securities market,so the profit manipulation of listed companies is a problem of securities market in China which is urgent to resolve.In-depth and comprehensive analysis and scientific and reasonable identification of profit manipulation is an important issue to be studied.Since the opening of the securities market in China,the cases of malicious profits manipulation in listed companies occur from time to time.In recent years,the number of the profit manipulation in listed companies in China’s securities market have been rising trend,the means of manipulating profits increasingly diverse and hidden.Today,the "YaTai Industrial Company Profit Manipulation Case" exposed to people’s vision,the amount of profits manipulation,the length of lasting manipulation time and the impact of the profits manipulation issue,really surprise and chill the public.In such a tight supervision and management,the scandal,that is profit manipulation in YaTai Industrial Company which lasted so much long time,exposed.The issue can not help but makes the theoretical and practical scholars think about that the reasons why YaTai Industry Company manipulate the profits,the means of profit manipulation in YaTai Industry Company.This paper chooses five years of profit manipulation in YaTai Industry Company as an example,interpreting its financial status and operation,combining with qualitative and quantitative financial analysis,making an in-depth analysis of the motivations,means and impact of the profit manipulation,in order to explore the profit control situation of listed companies in China and provide reference of relevent cases.At the same time,the paper tries to cause scholars from all social circles thinking of strengthening the internal accounting accuracy,the internal control system,the quality of internal supervision,China’s capital market management and related laws and regulations and etc.First of all,the background and significance of profit manipulation are described,and then,with reading a large number of literature,state the domestic and foreign classic discussion and the relevant research about profit manipulation in listed companies,like the reasons why the listed companies manipulate profit,the means ofprofit manipulation in listed companies,and how to identify the listed companies which manipulated profit.After analysing the literature reviewed,the research methods and research ideas adopted in this paper are explained.Before the paper going on in depth,the meaning of profit manipulation is defined and analyzed,and the easily confused concepts between profit manipulation and earnings management is analyzed,which makes the concept of "profit manipulation" clear;secondly,it makes the theoretical analysis the motivations to manipulate profit in listed companies from the three aspects that is the contract,capital market and supervision;In addition,it sorts out and shows the five means of profit manipulation commonly used,that is fictitious buying and selling transactions,advance recognition of income,postponing to determine the cost,reducing the provision for impairment of assets and conceal the related party transactions;Finally,it makes the relevant theories to explain the profit manipulation in listed companies.Through overview and analysis the development,business management team and management of YaTai Industrial Company,it helps you to further examine the whole process of profit manipulation in listed company which lasted five years.Talking about the reasons of its profit manipulation,it is mainly from the avoidance of risks,pressure of asset market and the contract conflict.As for the means of its profit manipulation,it is mainly by wrongly dealing with the cost of the quality of claims,the long-term equity transactions not including in the provision for impairment and non-compliance sales confirmation.In this paper,it also analyzes the impact of the YaTai Industrial Company Profit Manipulation Event from three aspects that is the company stock price,the company value and the company’s performance.Therefore,this paper will not only enrich the motivations of the profit manipulation in listed companies,the means of profit manipulation and the economic impact of the profit manipulation event,but also update and improve the relevant methods and accounting theory of profit manipulation and have certain theoretical and academic significance.In addition,given the different means of profit manipulation in YaTai Industrial Company,this paper analyzes and calculates the financial statements of YaTai Industrial Company in recent years,and with the combination of qualitative and quantitative methods,it makes a detailed and in-depth analysis about the means of profit manipulation.Through this case analysis,the case analysis of this article will help the company stakeholders to understand the impact of profit manipulation in listed companies and identify the reasons and means of profit manipulation in listed companies,thereby reducing the loss in capital market which is due to the profit manipulation in listed companies.And as forthe listed company itself and its management staff,it helps to alert the internal management in listed companies,to promote its right path to development.At the same time,it is also conducive for the policy makers to improve the revision of the guidelines,and help regulators to protect the healthy and orderly development of the national economy.