A Case Study Of ST HL's Real Earnings Management Taking Off The Hat

The special treatment system is a unique system in China's securities market,which is mainly aimed at the abnormal financial situation or other aspects of abnormal shares of listed enterprises.When there is an anomaly in the listed company,the stock will be treated specially,adding "ST" before the abbreviation of the company and distinguishing the normal company.When the abnormal situation is eliminated,the enterprise can apply for cancellation of special treatment,and the "ST" can be removed after approval,and the stock of the enterprise can return to the normal trading state.But if "ST" is not removed,the company's shares will be further implemented delisting risk warning.On the one hand,the existence of this system reminds investors to invest rationally in these specially treated listed enterprises;On the other hand,certain pressure is put on listed enterprises to make them manage the enterprises seriously and avoid special treatment.However,it is not possible to improve the operating situation in a short time,so many ST enterprises will adjust the profit through earnings management to make the net profit finally positive,so as to remove ST in the next year.At the same time,due to the continuous improvement of relevant laws,ST enterprises are more and more inclined to remove ST through more covert and flexible real earnings management activities in recent years.Based on this background,with the help of the case of ST HL,this paper analyzes the real earnings management means of ST HL and the performance after ST was removed.It is found that although ST HL successfully removed ST by means of real earnings management,its operating situation is not good after ST is removed.According to this finding,this paper proposes relevant Suggestions for restraining the real earnings management behavior of ST enterprises.This paper is divided into five chapters.The first chapter is the introduction,including the research background,research significance,literature review,research content and methods.The second chapter is the institutional background and relevant theories.This part firstly introduces the ST institutional background,and then introduces the relevant theories of real earnings management.The third chapter is the case description,mainly introducing the basic situation of ST HL,the "hat-taking" process,the industry background and the real earnings management motivation of ST HL.The fourth chapter is a case study.This part first makes a preliminary identification of the real earnings management of ST HL,then makes a specific analysis of its real earnings management methods,and finally analyzes the consequences of the real earnings management of ST HL.The fifth chapter is the conclusion and suggestion of the case.After the analysis of the ST HL case,it comes to the conclusion that the real earnings management behavior will change the normal business activities of the enterprise,cause the deviation of the development direction of the enterprise,and affect the long-term development of the enterprise.Then combined with the conclusion of the case,the paper puts forward suggestions for restraining the real earnings management behavior from the three aspects of enterprise internal governance,ST system and external supervision.