Research On Earnings Management Used By Listed Company To Get Rid Of Special Treatment

In our securities market's delisting risk warning system and other special treatment system,some poorly run companies are warned,the stock trading is limited,these companies tend to find ways to get rid of special treatment to resume normal trading.Actually,they always apply for revocation of delisting risk warning after they turn losses into gains.Part of these listed companies have mixed motives,so what make them get profit is not a real improvement,but a number of means of earnings management that can help them gain excellent short-term performance such as changing accounting estimates,stripping bad assets.And how do the investors identify the short-term behaviors that are not conducive to the long-term development of the company through known external information?On the basis of introducing the relevant background and theory and summarizing the research achievements of the predecessors,this paper analyzes the intrinsic motivation,external conditions and common methods of the earnings management in*ST companies with Shanxi Sanwei Group Co.,Ltd.as the main case,then analyzes the financial situation before and after the stock trading was warned and the reasons for falling into the risk of delisting combined with its 2011-2015 financial reports and the major events that have occurred in recent years.Next,in order to illustrate how*ST companies use the means of earnings management to successfully avoid delisting,the analysis focus on the means of earnings management that used to get rid of the stock delisting risk warning and how these means affect the delisting warning evaluation index specifically,supplemented by three companies in the same industry who flee from the warning successfully during the same period.Finally,this paper points out the necessity of identifying and managing excessive earnings management,comes up with a number of methods to help investors identify*ST companies whether and how to use earnings management to enhance the profit according to the research process and the result,furthermore,puts forward some reasonable governance recommendations for the excessive use of earnings management from a number of angles.The article reveals that it is unreasonable for some companies to try to manipulate profits in order to flee from the warning successfully,which is detrimental to the development of the company and undermine the interests of investors and the stability of the securities market.The identification methods that this paper points out are based on the available public information,which prompt the investors and is the innovation of the article.