Is The Earnings Management For Transfer Of Control?

In recent years,with the continuous development and perfection of China's capital market,the company's transfer of control activities are more frequent,which not only caused the outside investors and government regulators of widespread concern,but also inspired the academic research enthusiasm.But the difference is that the maturity of the Western market is that the majority of companies which get control from the other companies in China's capital market are not pay attention on target company's assets,business or business capacity,but the target company's shell resources and other potential benefits in transfer of control.Therefore,it is necessary to dig and explore the interests of the stakeholders and the target companies and other related interests in the process of transfer of control rights and behavior,and then through the analysis of the transfer of control and transfer of target companies after the potential profit path,not only help us to more profound understanding of the transfer of Chinese enterprises to control the various real motives,but also help the government regulators more effectively regulate the company's transfer of control activities,and thus better protect the interests of investors.This paper chooses the case of Coship Electronics in the early stage of the transfer of control.First,by analyzing the operating conditions and profitability of Coship Electronics in recent years,it found that its operating income and net profit continued to decline in 2012-2014,and the operating income continued to decline in 2015,but the Deterioration of Financial Performance;And by analyzing the Coship Electronics net profit component can be found in the current non-recurring profit and loss projects and operating costs of the project contribution to the net profit is extremely high,especially non-recurring gains and losses on the net profit contribution rate is very high,which may indicate Its current net profit there are signs of man-made manipulation.Secondly,through the analysis of the financial information of Coship Electronics in recent years,it is found that compared with the same industry and other companies in the same industry,Coship Electronics has made use of investment income,manipulative expenses,asset impairment loss And then transferred to adjust the signs of surplus;Moreover,in 2016 with the Tanaka Electronics and Mavericks capital agreement transfer control for the time node to speculate,through the combination of electronic information and non-financial information with the island can be found in recent years operating conditions have been The real activities earnings management is likely to be in order to achieve the transfer of control,and further analysis ruled out the possible existence of common earnings management motivation;Finally,for the state with the use of accounts receivable money management business and real earnings management to The way forward earnings management,this paper provides investors and regulators revelation with several recommendations.