Study On Identification And Governance Of Xiangtan Electrochemical Earnings Management

According to the "Implementation Measures for Suspending and Terminating the Listing of Loss-making Companies" promulgated by the China Securities Regulatory Commission,listed companies will be specially dealt with if they lose money for two consecutive years.If they lose money for three consecutive years,their shares will be suspended from listing.Listed companies adjust their profits through various ways to avoid the risk of delisting,which will not only harm the interests of investors,but also be detrimental to the long-term development of the company.The article traced the state-owned listed company Xiangtan Electrochemical Technology Co.,Ltd.in the chemical industry of Hunan Province and conducted an in-depth analysis of its business strategy,financial data,and information disclosure,and summed up the earnings management motives and measures adopted by the company at it's different period since it's listing.And conducted a financial analysis and diagnostic analysis for the company,and put forward suggestions for improving the real performance of the company.The article first reviews the literature on earnings management motivation,means,and governance,and analyzes the motivation of earnings management based on contract theory and information asymmetry theory.Secondly,on the basis of reputation theory and game theory,the governance of enterprise earnings management is analyzed.Based on symbiotic theory and system analysis theory,the enterprise strategic evaluation and analysis diagnosis are analyzed.Once again,the history and status features of Xiangtan Electrochemical Company were introduced.It was pointed out that due to the economic downturn,the development of the chemical industry has been in a sluggish state in recent years,and Xiangtan Electrochemical's purchase costs and sales operations have been affected,in order to avoid being ST or non-public With regard to the purpose of issuing additional funds,it adopted government subsidies,related transactions,capital lending,changes in sales policies and other earnings management methods in the three stages after the listing,and restored the actual performance of Xiangtan Electrochemical Earnings Management,and then based on the industry environment.The financial analysis put forward more effective proposals for Xiangtan Electrification to improve its true performance in terms of technology,talent and finance.Finally,in order to effectively suppress the phenomenon of earnings management of listed companies,the government,professional organizations and media are proposed to manage earnings management.The possible innovation of this article lies in the identification of the earni ngs management motivations and means in different period of Xiangtan Electrifi cation.At the same time,it carries out strategic evaluation and diagnostic analy sis of the company and puts forward proposals that are beneficial to the develo pment of the company and suggestions for governance of earnings management of listed companies.