| With the continuous development and improvement of China’s market economy,China’s capital market has also developed rapidly.In order to better regulate and supervise the capital market,in accordance with the provisions of the Company Law concerning suspension and termination of listing,in April2003,Shanghai and Shenzhen Stock Exchanges issued the Notice on Strengthening Risk Warning for Companies with Risk of Termination of Listing,and on May 12 of that year,they began to implement the risk warning system for delisting.The purpose of this system is to fully warn investors of the risks of termination of listing of listed companies,and at the same time to differentiate it from the risk warning of special treatment in other abnormal situations.The purpose of its formulation and implementation is to warn the operating conditions of *ST enterprises and urge them to take effective measures to strengthen enterprise management and improve operating efficiency.The implementation of this system has played a positive role for*ST enterprises,but because of the shortage of shell resources of Listed Companies in China,most *ST enterprises adopt earnings management to manipulate profits for the purpose of "star-picking".For this reason,since2012,Shanghai and Shenzhen Stock Exchanges have constantly revised and improved the listing rules.Although the earnings management of *ST enterprises has been restrained to a certain extent,new earnings management problems continue to emerge,which disturbs the normal development of China’s capital market to a certain extent.Therefore,the problem of *ST enterprises manipulating profits through earnings management has been deepened.The research has certain practical significance for enterprise managers and investors.This paper explores the earnings management of WF listed companies during the "star" period,which is mainly a wholesale and retail enterprise ofconstruction materials.Since its listing,the company has experienced many warnings of delisting risks,and has taken a series of rescue measures to maintain its listing qualification.Through case analysis,this paper analyses the financial situation of WF listed companies from 2009 to 2017,and clarifies how the company adopts earnings management to turn its losses into profits during this period.By calculating the value of EVA,it corresponds to the fact that the financial situation of enterprises has not improved after earnings management,points out the problems existing in earnings management of WF listed companies,and puts forward corresponding countermeasures.The earnings management of WF listed companies in pursuit of short-term benefits not only has a negative impact on the efficiency of capital use of enterprises themselves,but also misleads investors and hinders the long-term development of companies.At present,the phenomenon of earnings management still exists in ST enterprises in China.On the one hand,ST enterprises are eager to turn losses into profits in order to avoid delisting.On the other hand,the relevant system of earnings management is not perfect,and the supervision of enterprises by the regulatory authorities is not enough.Therefore,the relevant departments of our country should gradually improve and perfect the relevant system,strengthen supervision from all sides,and increase punishment,so that the securities market of our country can develop healthily and orderly. |
