A Case Study Of Earnings Management In CS Corporation

With the rapid development of China's securities market,more and more companies enter the securities market in different ways.In this process of rapid development,relevant laws,regulations and standards also expose some areas that need to be improved,which also provides some enterprises with room for earnings management.On the basis of accounting standards and relevant laws and regulations,the management of the company will control or adjust the earnings information reported by the company to achieve the purpose of the company known as earnings management.When the company's operation is affected by market factors and the performance is not up to standard,and it is difficult to change the status quo through normal operation in a short time,some companies will choose earnings management to tide over the crisis in order to temporarily turn losses into profits.Based on literature research,inductive analysis and case analysis,the three methods as the research method,with heavy assets and production cycle longer CS company as the research object,first introduced the basic situation of CS company,industry development present situation and the main financial situation,through trend analysis,special projects and cash from three aspects: identification CS company earnings management;Secondly analyzes the CS company earningsmanagement motivation,and earnings management in CS company,on the basis of recognition and motivation,it analyzes the CS companies use asset restructuring,associated trade,disposal,government subsidies,and asset impairment of assets in five ways to carry on the earnings management,depth contrast of CS company earnings management before and after its financial performance and market performance,and through the analysis of the principal component analysis before and after the CS company earnings management in the industry competition ability,the results showed that the surplus management of CS company has both positive effects and negative effects;Finally,this paper analyzes and summarizes the relevant research conclusions of earnings management of CS companies and draws inspiration from the three aspects of listed companies,investors and external supervision to reduce the earnings management space and probability.The earnings management case study of CS company can make the outside world understand the financial information of the company more truly,so as to promote the company to consider the long-term development strategy,and at the same time boost the investment confidence of investors.