Research On Earnings Management Behavior And Countermeasures In Removing Cap From *ST Shenji

With the development of the capital market,in order to regulate and monitor the securities market,China’s regulatory authorities have issued a series of laws and regulations.For example,the ST system,on the one hand,it reminds companies that are subject to delisting risk warnings to increase operating profit,improve the company’s operating conditions,and cancel the risk warning signs,otherwise it will be suspended from listing,on the other hand,it also reminds investors to invest carefully and pay attention to Market risk.However,despite the many positive impacts of the system,many new issues have emerged.At present,as the listing conditions of Chinese companies become more stringent,listing qualifications have become more and more valuable.Therefore,when companies lose money,some *ST companies often choose to use earnings management to increase profits,so as to avoid them.Delisting,the purpose of protecting "shell" resources.In this context,this article selects*ST Shenji as a case company for research,and analyzes how *ST Shenji uses earnings management to make the company’s net profit from negative to positive,thereby eliminating special treatment.Therefore,this article selects *ST Shenji as a case company,and combines cap removal and shell protection with earnings management,which has certain novelty and strong practical guiding significance.Afteranalyzing the entire earnings management behavior in *ST Shenji Cap,a series of governance countermeasures are proposed.This article mainly uses the research method combining literature research and case analysis.On the basis of searching and reading related literature and related theories,this article first describes the industry development status of the company,the company’s related briefing,and the process of removing the cap.The current background of the current earnings management of the machine,then analyzes the motivation and methods of *ST Shenji’s earnings management,and draws the results of earnings management,which are discussed in terms of whether the company has successfully removed the cap and the company’s profit.Finally,through the above analysis,it was concluded that although *ST Shenji successfully took off the cap with earnings management,it still had problems of frequent asset disposal,vague determination of the fair value of assets,and incomplete corporate governance,and it also caused certain adverse effects on the enterprise.In view of these,this article puts forward corresponding governance measures,and proposes countermeasures from the aspects of internal governance of the enterprise,improvement of the external environment,and strengthening supervision,which can provide reference for the governance of earnings management of *ST enterprises in China.