Research On The Profit Manipulation Of Yatai Corp.

Despite the exposed scandals of Nantex Corp.,Shanghai Material Trade Co.,Jade Bird Huaguang Co.,the profit manipulation of the listed companies is still a frequent phenomenon.The frequent occurrence of financial fraud in listed companies seriously disrupts the economic order of our country,and damages the interests of small and medium investors.Therefore,the study of profit manipulation of listed companies has great practical significance.In February 2016,the China Securities Regulatory Commission issued the “Decision on Punishment” for The Financial Fraud of Hainan Yatai Industrial Development Co.,Ltd.,(Hereinafter referred to as Yatai Corp.,Stock Code: 000691.),which marks another five consecutive years of financial fraud as the dust settles.Yatai Corp.involved a huge amount of time and a long time span,which has representative significance of the financial fraud in recent years.This article attempts to Yatai Corp.'s financial fraud as an example to reveal the deep-seated causes of listed companies to manipulate profits.At first,this paper discusses the domestic and foreign research situation as well as the general theory of profit manipulation.Secondly,this article reviews the Yatai Corp.'s financial fraud case.Using industry contrast,trend analysis,factor analysis,inductive statistics and a series of analysis methods of the Yatai Corp.to analysis industrial profit manipulation.Revealing the main means of profit manipulation by concealing related party transactions,recognizing income in advance and less provision for impairment.Finally,using the method from specific to general to research.This paper introduces the reasons of profit manipulation,the means of profit manipulation and the recognition and countermeasure of profit manipulation of listed companies separately in several chapters,in order to avoid similar events happening again in our country's securities market.