The Analysis Of Earnings Management Before And After The Pledge Of Major Shareholder Of Goody Technology

Arose in the 20 th century the equity pledge is a kind of equity as collateral to pledge financing of new financing channels,due to its characteristics of liquid,easy to operate,in recent years been a favourite of many of the major shareholders of listed companies.Equity pledge has played an active role in financing large shareholders,but there are some risks.Large shareholders may be based on money demand,maintain control,risk transfer and interest encroach on motivation for equity pledge,in order to improve share price,to maintain the value of collateral,large shareholders are likely out of the front and back of equity pledge by earnings management.In the long run,the earnings management of large shareholders of listed companies has a great impact on the long-term development of enterprises.Therefore,it is of theoretical and practical significance to study earnings management before and after the equity pledge of major shareholders,and to control the risk of equity pledge and improve corporate governance.This article adopts the method of normative study method and case study,with principal-agent,information asymmetry,incomplete contract theory as the theoretical basis,earnings management changes before and after the big shareholder equity pledge mechanism was studied,and with regard to science and technology as a case,the big shareholders equity pledge of earnings management is analyzed before and after,at last,it puts forward the thinking of some normative.The research shows that the equity pledge can cause the change of earnings management to some extent because of its motive and economic consequence.Regard to science and technology major shareholders to widely regard for financing demand in 2013 to 2015,frequent equity pledge,to nearly seven years of science and technology through the analysis of company operation and financial situation,found in science and technology in equity pledge in both before and after the earnings management behavior;Equity pledge before,demand for funds,science and technology by the proportion of accounts receivable bad debts provision,with the help of asset depreciation and amortization method such as the profits in order to improve theenterprise to carry on the accrued earnings management;After the equity pledge,by loosening increase the accounts receivable credit policy,government subsidies,the earnings management by the accrued more earnings management to real earnings management to get more money.Finally,in view of the large shareholders equity pledge may cause earnings management changes,in order to standardize financial market order and reduce the equity pledge the adverse consequences of the impact on earnings management,aiming at listed companies related to equity pledge,a pledge,regulators,respectively,puts forward the corresponding opinions and Suggestions.