Earnings Management Research Of Shipping Enterprise

In recent years,with the development of China’s capital,more and more enterprises into the market,accounting standards and related laws and regulations in the rapid development of the environment gradually exposed the imperfections,to provide enterprises with a certain space for adjustment.Enterprises change the choice of accounting policies and accounting estimates,or purposefully control the occurrence of business activities node to adjust the external disclosure of accounting information,so that users of financial statements according to the needs of enterprises to judge their business performance and development trend,this behavior is known as earnings management.When companies are in financial trouble,in order to turn a profit in the short term,most companies will choose to use earnings management to tide over the crisis.Shipping industry is a cyclical industry,highly susceptible to the impact of market economy fluctuations.When the international economic situation is depressed,the price of the whole industry will decline,transport demand will also be reduced,shipping enterprises in such a trend under the influence of the high capacity of overcapacity,poor revenue of the financial predicament.At the same time,fuel oil price is also a major factor affecting the cost of shipping enterprises,with the changes in the international economy,oil prices rise and fall,the cost of shipping enterprises easily affected by its impact on some changes.In the case of market downturn cost rise,shipping enterprises are difficult to change the profitability of enterprises from the business structure,usually take certain means to carry out earnings management,to achieve the maximization of the interests of enterprise stakeholders or the maximization of enterprise value.COSCO as a leading enterprise in the shipping industry,in 2011 and 2012 for two consecutive years of losses,was implemented a Brexit risk warning.In order to get rid of financial difficulties,remove the "*ST" hat,COSCO to adopt earnings management means,in 2013 to re-achieve positive profits.Under such an event,this paper selects Cosco Sea control as the research object,combines the case study method and the literature research method,deeply excavates its financial data in the 2011-2017,combines the development status of shipping industry and the characteristics of shipping enterprises,probes into the means and methods used by shipping enterprises in earnings management.The paper also makes a comprehensive analysis of the financial situation of the company before and after earnings management,and summarizes the effect of COSCO on the implementation of earnings management.In addition,combined with the nature and background of the company,this paper studies the internal and external reasons for promoting the earnings management of COSCO,in order to provide reference for other enterprises,and bring valuable information to the managers of listed companies and users of the report,and put forward some improvement countermeasures for some problems.Starting with the research problem,this paper analyzes the background of the problem,and gives a brief description of the research methods,research ideas and research framework.Combining with the literatures at home and abroad and on the basis of relevant theories,this paper introduces the concept of earnings management,and probes into the main motives of earnings management and the means commonly used by the company.In the case introduction part,first of all,the general introduction of the basic situation of the case enterprise and analysis of the industry background and shipping characteristics,and then based on the timeline,describe the brief passing of the case events and the changes in the net profit of COSCO over the past few years.Based on the financial data during the study period of middle and sea control,this paper makes a brief analysis of several important indexes of enterprise financial data,and finds that there is the possibility of earnings management.Combining with the characteristics of shipping enterprises,this paper mainly adopts the ways and means of controlling earnings management in the sea,and discusses the effects of earnings management in case enterprises.Based on the nature of the enterprise and strategic planning,this paper analyzes the reasons of earnings management from the management layer,managerial level and external factors.Finally,through the previous research,the paper draws the conclusion of earnings management in shipping enterprises and puts forward some suggestions,and holds that moderate earnings management in enterprises when they are in business predicament can strive for enterprises to adjust the business sector,change the profit structure time,but also in a short period of time to achieve the goal of turnaround,But long-term reliance on earnings management to regulate is not a wise move,enterprises can only really start from the mode of operation,improve their competitiveness in order to obtain lasting healthy development.