Study On Earnings Management Behavior Of Listed Companies Using Impairment Of Assets

With the development of China's social economy,the problem of earnings management of listed companies has gradually become the focus of attention of the whole society.In a certain range,the appropriate earnings management behavior of the listed companies can play a reasonable role in managing the profit,and help to improve the quality of the accounting information.However,excessive earnings management will reduce the quality of earnings information,affect the authenticity of accounting information,and make the right economic decisions for investors not conducive to the healthy development of market economy.The reversal of provision and has great flexibility and operability of the impairment of assets,also has certain difficulty to audit the earnings management behavior of listed companies using asset impairment,so using asset impairment for earnings management of listed companies has become the common means.In order to curb excessive earnings management of listed companies,China's current enterprise accounting standards stipulate that asset impairment provision for long-term assets and other illiquid assets is prohibited from being transferred back.However,the new guidelines for impairment can still be reversed some of the short-term assets provision,and providing more opportunities for the current occupation judgment criterion of accounting personnel,increase the flexibility of accounting policy choice,which have increased the earnings management of listed companies using asset impairment space.This paper takes the relationship between asset impairment and earnings management as the starting point of the study,and combines the method of normative research and case analysis.Firstly,by referring to the analysis of previous related research,summarizes the related theory of asset impairment and earnings management;secondly,analysis the relationship between the two,found that asset impairment theory further restrain earnings management behavior of listed companies at the same time,also urges the new means of earnings management;diversification of earnings management also promote the improvement and development of the theory of impairment of assets,it can be said that there is an interactive relationship.Again,on the basis of above theoretical analysis choose the representative listed companies Zhangzidao group Limited by Share Ltd as a case.Because the Zhangzidao company for two consecutive years in 2014,2015 losses,in 2016 by thestock exchange as "ST".Company in 2015 2014,large asset impairment,and the impairment of the directly included in the current profits and losses,the company behavior is earnings management using assets impairment,in loss year large provision for asset impairment by huge write off the way in the loss year focused on the release of risk,for a year to achieve profitability and lay the foundation,so as to avoid the risk of delisting.At the same time,combined with the company Zhangzi Island financial data of 2008-2016 in the past nine years,the specific behavior of the nearly nine years of asset impairment analysis,analysis of Zhangzi Island Company accrued assets impairment and impact on the operating performance of the company.Finally,specific suggestions are put forward to standardize listed companies' earnings management from relevant laws and regulations,internal control,external environment and capital market regulation.