Research On The Methods Of Earnings Management Of Listed Companies Under *Special Treatment In China

China's capitalist market starts later than the west,but develops rapidly.In the end of 2017,the number of Listed Companies in Shanghai and Shenzhen stock exchange has reached nearly 3500.In 1998,in order to standardize the market and boost the healthy and stable development of the capital market,the Securities Regulatory Commission issued a notice that the two stock exchanges in Shanghai and Shenzhen were required to implement the ST system which has been 20 years.In 2003,Shanghai and Shenzhen Stock Exchange revised the ST system,adding a new delisting risk warning system,which called the *ST system.Since the implementation of the system,it has been playing a role of warning investors to invest rationally.In 2012,Shanghai and Shenzhen stock exchange changed the pick cap conditions of the *ST listed companies: the listed companies with loss for two consecutive years,if they turned to gain profit in third years,they could remove the cap,no longer demand the net profit after deducted extraordinary items is positive.And then the number of the pick cap of the *ST listed companies rose sharply.The reason is *ST listed companies carry out earnings management in order to achieve profitability.The earnings management behavior of *ST listed companies will mislead investors to make decisions and affect the healthy development of the capital market.Taking *ST listed companies as the research object,this paper studies the way of earnings management,which can provide reference for reducing the earnings management behavior of *ST listed companies,protecting the interests of investors and giving full play to the allocation of resources in the capital market.This paper combe the relevant literature at home and abroad and draw on the achievements of previous studies,define the relevant concepts,and then base on the hypothesis of economic man,principal-agent theory,information asymmetry theory,contract theory and corporate governance theory analyze the reasons and conditions for the earnings management of *ST listed companies theoretically.On this basis,taking 39 *ST listed companies in 2017 as the research samples,using the bulletin and annual report data from 2013 to 2016,using the method of combining statistical analysis and case analysis,analyzes the two aspects from accounting policy change and extraordinary items,and then reveals the way of earnings management of *ST listed companies.The results show that in order to achieve pick cap successfully,*ST listed companies will carry out earnings management,including accrual-based earnings management and real earnings management.Real earnings management is more prominent and universal,while accrual-based earnings management exists,but it is not common.*ST listed companies mainly through accounting estimates change to implement accrual-based earning management,including change the fixed assets depreciation years,change the bad debt preparation method,change the bad debt preparation proportion.Mainly through adjusting the extraordinary items to implement real earnings management,including the disposal of illiquid assets and government subsidies.Finally,4 suggestions are put forward from the following aspects: optimizing the ownership structure,improving the checks and balances mechanism,strengthening the external supervision,and improving the *ST system.