A Case Study Of Earnings Management Of ST Companies To Get Rid Of Warnings Of Delisting

In China's securities capital market,ST companies use special measures such as earnings management and methods to achieve the goal of getting rid of the delisting risk warnings is very common.This is actually a major consequence of the objective defects at the institutional level with the ST system as the core."Delisting difficult,Phoenix" and other words have also even become synonymous with the A-share market.This caused widespread concern from all walks of life.Therefore,this article has a certainly theoretical and practical value for the research on the earnings management of ST companies.Based on the comparatively normative case study approach,this article reviewed the current status of related research at home and abroad.We also introduced theories related to earnings management and China's ST system.These established the relevant theoretical basis for this study.Then,With *ST Xiali as an example,On the basis of a brief introduction to case events,we identified and analyzed the main motivations and methods for earnings management of the company to get rid of the delisting risk warnings,and we also pointed out the results and consequences of this action.Finally,we put forward some countermeasures for the research.In terms of structure,this article is divided into six chapters.Among them,the first chapter is the introduction;the second chapter is about the summary of the ST system and the earnings management theory;the third chapter is the case description;the fourth chapter is the case analysis;the fifth chapter is the countermeasure suggestion;the sixth chapter is the conclusion and prospect.Taking the example of *ST Xiali,a well-known listed company in China's automobile manufacturing industry.The research shows that on the one hand,to standardize the company's disarray,it is necessary to further design and supervise the implementation of related systems,such as perfecting relevant laws,regulations and guidelines,and the implementation of ST delisting system,supervision of listed companies to establish a comprehensive internal governance structure.On the other hand,"SYSTEM" is not all-powerful.So it also needs to guide ST Companies from the perspective of company strategy,starting from regulating the operation of main business of the Company,implementing innovation-driven development strategy,taking technological innovation as the core,coordinating institutional innovation,management innovation and service innovation,to achieve continuous improvement of their business status.Ultimately,the transformation and development of the company's business will be realized.Only with "two-pronged approach" and "two-handed approach," can we better solve the problem of using earnings management to achieve long-term stability in our capital market and promote the sustained,steady and healthy development of China's capital market.