Research On Earnings Management Behavior Of EK Company

The research object of earnings management behavior has gone through several stages,from the research of the whole capital market to the research of a certain industry.Nowadays,more and more studies begin to study earnings management behavior of a company.This change reflects to a certain extent the differences of earnings management motivation and means among different companies.Faced with this difference,how to make the accounting information of companies reflect their real earnings,so as to ensure that the interests of investors are not damaged becomes more urgent.For the pharmaceutical accessories industry,which has a higher demand for R&D capability,adequate financing sources can provide certain financial guarantee for the improvement of R&D capability of pharmaceutical accessories companies,so that they can gain more obvious advantages in the industry competition.Based on this motivation,companies in this industry are more likely to have earnings management behavior,so that the accounting information reflected in financial statements can be.Attract more investors attention.Among them,EK Pharmaceutical Company has been paid attention to in recent years because of its dramatic improvement in operating performance,and investors have doubts about whether it has earnings management behavior.This paper chooses EK company as the research object.Firstly,it introduces the company's basic situation and industry situation,focusing on the use of relevant financial indicators and statement item analysis to identify whether it has earnings management behavior or not.Secondly,on the basis of identifying its earnings management behavior,it analyses the motivation of earnings management behavior of EK company,and carries out the specific means of earnings management behavior.Emphasis is laid on the analysis of the economic consequences of earnings management behavior of EK company,especially the negative economic consequences of earnings management behavior.Finally,on the basis of the analysis of EK company's earnings management behavior,in order to prevent its similar excessive earnings management behavior,the following feasible suggestions are put forward,such as strengthening the function of independent directors,improving the incentive mechanism of the company,formulating the company's development strategy rationally,and strengthening the supervision of external audit institutions,etc.Through the study of earnings management behavior of EK company,we can make the company report more reflect its real earnings information,improve investors' investment confidence,and realize the company's long-term development strategy.