To Investigate The Problem Of Overusing Earning Management On *ST Boyuan

Since the Shanghai stock exchange was stablished on November 26,1990,China’s capital market has become one of the most prosperous in the world capital markets today.However our capital market is different from international capital markets in developed regions,as our capital market many institutional drawbacks.Earnings management behavior is common to the listed companies in our country,brings a lot of bad influence to the stable operation of the economy,also ultimately harms the interests of investors and disrupt the stability of the capital market.Although in terms of itself,the concept of earnings management behavior and tax avoidance is neutral,as if the degree of earnings management of listed companies control in a reasonable range,earnings management could polishing the company’s financial statements,and earnings management at the same time.But overusing earnings management behavior will develop into a serious fraud behavior and become a big public hazard in the capital markets.But it is difficult to distinguish the overusing earnings management and earnings management,therefore,the study about the cause of overusing earnings management behavior motivation and means is very important.Special economic background let our country’s listed companies from the initial listing have different motive,purpose and means of earnings management and manipulation of the surplus from western countries,and a lot of earnings management behavior would the develop into overusing earnings management and generate a large amount of illegal behavior.Based on past studies,the motivation of excessive earnings management of listed companies in our country mainly contain capital motivation,that is to say,for the main purpose of earnings management of listed companies in our country is to get finances.The means of earnings management is mainly divided into accrued based earnings management and real based earnings management,real based earnings management of listed companies in China were the main means of earnings management.Through to the analysis of the *ST Boyuan overusing earnings management motivation,means and the causes,the paper expects to provide some references for relatedstudies.Overusing earnings management of the *ST Boyuan is very representative in listed companies.At the beginning *ST Boyuan named Zhejiang Phoenix,with the first tag is the "Lao Bagu",after got IPO.It also is the first company in the a-share market listed companies that foreign local IPO.Once Zhejiang Phoenix IPO,it got more attentions than the other seven Shanghai local shares from the market.But frequent replacement of shareholders during 20 years let its excessive earnings management behavior became more serious,in the end he were forced to delist in 2016.*ST Boyuan is the firstcompany that delisting by severe information disclosure illegal situation in China securities market and is also the first formal implementation of the new delisting law that forced to be delisted.Therefore,*ST Boyuan is a is a good way to study of excessive earnings management behavior.This paper argues that Overusing earnings management motivation of *ST Boyuan is mainly related to financing,including the repayment pressure,financing needs and demand protect shell,means of earnings management activities are mainly real based earnings management,real based earnings management’s corresponding gauge concealment and flexibility are stronger than accrued based earnings management.These characterstics that *ST Boyuan overusing earnings management has are very typical,the characteri*STics are generally exist in capital market.*ST Boyuan is one of the earliest listed companies in A stock market,but it in order to get finances,its excessive earnings management behavior is blatancy,*ST Boyuan’s management and financial personnel are lack of moral integrity,also more evidence to the necessity of preventing excessive earnings management behavior of listed companies.Actually,through the analysis of the financial statements of *ST Boyuan data and financial indicators that be disclose,*ST Boyuan’s Overusing earnings management behavior can be found in advance,but because our country company internal and external supervision,there are some loopholes and the deformation of the capital market,the Overusing earnings management behavior could not be found in time.Based on the research of the *ST Boyuan could give us know-ledges about the overusing earnings management of listed companies in China,so we could understand the overusing earnings management’s motivation,causes and means as well as the measures to prevent excessive earnings management.In terms of the structure of this paper,it introduced the research status of earnings management at first,including earnings management approaches,motivations as well as its positivity and negativity.In the following Chapter Two,relevant theories about earnings management were summarized,including definitions of earnings management and excessive earnings management,approaches and motivations of earnings management,and factors that can affect earnings management.Among the contents mentioned above,the most important contents are the definition of relevant concepts,motivations,and approaches.Then,in the Chapter Three,the specific behaviors of Zhuhai BoYuan Investment Co.Ltd.(hereinafter referred to as “BoYuan”)that caused excessive earnings management were analyzed in terms of its motivations and approaches.The analysis of causes for excessive earnings management of BoYuan was carried out in the Chapter Four,in which the Iceberg Theory was adopted to analyze the causes.Furthermore,the causes were classified into two categories: internal cause and external cause.At last,reflection about BoYuan’s case was carried out in many aspects such as capital market regulation and internal control system in the Chapter Five.