The Case Study On The Manipulation Of Earnings In Affiliated Transactions Of Q Co., Ltd.

With the continuous improvement of the market economy system,The scale of China's securities market has gradually expanded.The phenomenon of external investment and mutual shareholding of listed companies is increasing,and the relationship between related parties is complicated,so it is difficult to sort out.In order to raise the stock price,reduce the tax burden,Deliver benefits to major shareholders and avoid the stock being suspended from listing,some listed companies use related party transactions to manipulate surpluses,create false financial data,and disclose the finished financial report to the outside world,seriously infringing the interests of small and medium investors and creditors,and disrupting the capital market order.In this context,This paper discusses the problem of earnings manipulation in affiliated transactions of Q Co.,Ltd.and proposes governance suggestions,Hoping to help Chinese listed companies regulate related party transactions and their information disclosure activitiesUnder the guidance of the instructor,the author chooses to study the related transactions of listed companies in combination with the professions and hobbies.Firstly,in view of the popularity of related party transactions in listed companies in China and the frequent use of their manipulating surplus,the significance of studying related transactions manipulating earnings is far-reaching.This paper collects relevant materials extensively,understands the research situation and research results of related parties in domestic and foreign academic circles,and determines the content and methods reference to the experience of predecessors.Secondly,reading widely related books,journals,magazines,excellent papers and electronic data related to related party transactions,understand the definitions of related parties and related party transactions,the content and regulations of related party information disclosure,related transactions and earnings manipulation,etc.to lay a theoretical foundation for the writing of this paper.Thirdly,through comparativescreening,this paper selects the earnings manipulation in affiliated transactions of Q Company Limited as the research object,introduces the basic situation of the company,several related transactions in 2012,and sorts out the actual controllers and their control relationships in recent years.Then,it analyzes the case of the earnings manipulation in affiliated transactions of Q Co.,Ltd.,and analyzes the disclosure of related party transaction information violations and the causes and consequences of the related transaction manipulation surplus based on the information already available.Finally,based on the above,combined with the knowledge,relevant literature and the current status of the securities market,we propose suggestions on similar issues of governance,and expect all listed companies to take this as a warning,to contribute to strengthening the supervision of the securities market and regulating the order of the capital market.