Earnings Management Through The Sale Of Assets

The profitability of the enterprise is the core content of corporate financial indicators,the relationship between the enterprise's survival and development,plays a very important role in the evaluation of the listed company's financial condition,operating level,the issue of new shares,financing,delisting,for various purposes,the listed company will adopt various means of earnings management,therefore,earnings management has been a hot issue in the field of accounting.With China's January 1,2007 implementation of the new accounting standards,restrain enterprise earnings management behavior through accounting estimates and accounting methods,and real earnings management is gradually favored by the enterprises,and at the same time,along with the vigorous development of changes in China's economic environment and the real estate industry,the disposal of real estate and stock ownership enable enterprises to obtain large profits in the short term,because the transactions involving large amounts,and has strong concealment,is a kind of earnings management method which have a high efficiency,therefore,the disposal of assets has become an important means of earnings management of enterprises.However,the earnings management behavior did not substantially improve the operational status of enterprise,and will give the interests related to false information transmission,misleading investors,even will increase the difficulty of supervision,prevent the healthy development of the economy,therefore,effectively identify the earnings management behavior of listed companies,and effectively inhibit the use of the disposal of assets earnings management has become the main purpose of this paper.This paper mainly analyzes the earnings management activities of the company by the disposal of assets.Firstly,this paper discusses the research background and significance of the research on the basis of the stock market,the importance of accounting information,the application of the new standards and the status quo of the disposal of assets of listed companies.Secondly,refer to other scholars on earnings management research literature,summarize the research results,and form my own research ideas.Thirdly,through the statistical analysis of the data,this paper analyzes the present situation of assets disposal of Listed Companies in china.Fourth,through the case analysis,the disposal of real estate and stock ownership by A company was studied,and compared with the analysis of the equipment disposal by B company,research on the relationship between earnings management and sale of different types of assets.Finally,some suggestions are given to enterprises,regulators,accounting firms and investors.Through the analysis of the current situation of China's listed companies' asset sales,found that the listed companies in China have the behavior of earnings management at the end of the year.Through the case analysis,found that A company exist earnings management behavior by the disposal of equity and real estate,although the use of assets disposal can improve the company's financial position and performance in a short time,but is not conducive to the long-term development of the company.Through the comparative analysis of the case,found that the disposal of equity and real estate is more likely to be the means of earnings management compared to the disposal equipment.