~*Study On Non-recurring Profit And Loss Earnings Management In The Special Off-limits Of ST

According to the different components of the surplus,the sustainability can be used as a standard to classify the net income into recurring profit and loss and non-recurring profit and loss.Unsustainable non-recurring profit and loss due to its contingency,one-time characteristics,resulting in the adjusted profit can not reflect the actual business ability and profitability of the enterprise.The disclosure standard is also vague.In addition,in the newly revised delisting rules of the exchange in 2012,the profit condition of*ST company withdrawing the delisting risk warning(namely "taking off the hat")was changed from "net profit is positive after deducting non-recurring gains and losses" to "net profit is positive".The relaxation of the warning conditions for the withdrawal of delisting risks in the new rules provides an operating space for*ST company to manipulate non-recurring profit and loss for earnings management and realize the reversal of loss.However,the prevalence of this phenomenon will not only disturb the judgment of investors and harm their interests,but also lead to the emergence of more and more"zombie enterprises" in the long run,which will reduce the investment efficiency and hinder the healthy development of the capital market.On the basis of literature review at home and abroad,this paper collected and analyzed the data of 47 successful hat-picking*ST companies in Shanghai and shenzhen in 2017.The results showed that the phenomenon of*ST companies using non-recurring profit and loss to realize the hat-cutting has become very common.Then,the representative*ST zhongte in the sample is selected to analyze the specific means,causes and existing risks of*ST zhongte's abuse of non-recurring gains and losses to achieve the loss reversal cap through the case analysis method.It is found that there are loopholes in the delisting procedure design.imperfect definition and disclosure of non-recurring profit and loss,and insufficient external audit supervision.Therefore,this paper finally puts forward Suggestions on the need to improve China's current delisting risk warning system,clarify the definition and nature of non-recurring profit and loss and strengthen the quality of external audit supervision,so as to better protect the rights and interests of investors and promote the healthy development of the capital market.