Research On Earnings Management Of Dongsheng Technology's Debt Restructuring

With the rapid development and expansion of China's capital market,listed companies have become an important indicator of attracting investors' investment in order to further attract investment.Because of the increasingly fierce competition among listed companies,It is likely that financial crisis will be encountered due to poor management and other reasons.In order to maintain the qualification of the listing as a valuable shell resource,the “beautification” of earnings management in the financial statements has emerged.Research shows that in recent years,listed companies in the ST category(financial or other situations that require special treatment)will mostly choose debt restructuring to manage their earnings and adjust their debt structure to achieve profitability.Although to a certain extent,the company's liabilities increase profitability,it will inevitably lead to various problems such as unfair trading assets and unsound disclosure of information due to imperfect systems during the actual operation.Therefore,studying the earnings management behaviors of listed companies' debt restructuring helps to standardize the earnings management activities,which can not only meet the needs of their own development,but also play a role in promoting the healthy and orderly development of the securities market in China.This paper uses the literature survey method to analyze the methods,characteristics,and impacts of earnings management of listed companies using debt restructuring by referring to domestic and foreign references and related theoretical systems of listed company debt restructuring and earnings management.At the same time,we use case study method to select Dongsheng Technology debt restructuring earnings management case as the research object,it is analyzed how the ST listed companies in the stock market carry out earnings management through debt restructuring to achieve industrial transformation,reduce and transfer liabilities to improve net profits,and then achieve the goal of relisting after delisting.The comparative research method was used to compare the financial status and operating results of Dongsheng Technology's earnings before and after management,The success and exposure of the earnings management behavior in the various stages of the technology debt restructuring.Specifically,Dongsheng Technology through debt restructuring and earnings management,while achieving debt relief and introducing high-quality assets to achieve industrial transformation,there are still problems such as the ambiguous determination of fair value of trading assets,frequently related party transactions and internal corporate governance structure confusion.Caused varying degrees of harm to shareholders' equity and company management.Therefore,the revelation of this paper is: For Dongsheng Technology itself,it is necessary to improve the corporate governance structure and external supervision system,strengthen the information disclosure system to protect the rights and interests of small and medium shareholders,and do a healthy and orderly strategic development plan;For the securities market,it is necessary to improve the corresponding rules and regulations,and improve the regulatory mechanism to regulate the behavior of debt restructuring and earnings management.