| The delisting pressure is one of the main motivations for Listed earnings management.China ’s delisting system continued to reform in 2012-2014.The operating performance of ST company is subject to more stringent regulation.The ST company which touch the red line will be forced to delist.Therefore,the changes of ST’s earnings management method and specific means during this period should be studied.This is of great significance to complete China’s delisting system and protect the rights and interests of small and medium-sized shareholders.This article uses* ST Feng Huang and * ST Chang You,the two companies in the same group,as a case,to comparative analysis their financial situation,their recovery listing or delisting history.Based on this,this paper focuses on the four aspects of accrual earnings management and real earnings management,earnings management direction,earnings management specific means and the economic consequences of earnings management.Through the case analysis of the two companies,this article found that the delisting pressure does have an impact on ST’s earnings management.Through the identification of the accrualearnings management and real earnings management,this article divides therecovery listing or delisting of two companies into three stages: ST stage,* ST stage,recovery listing or delisting stage.This paper found that the two companies tend to choose low-cost accrued earnings managementin the ST stage.In the *ST stage,with the increase in the pressure of delisting,the two companies use more real earnings management behavior,which is hidden and flexible.In the recovery listing or delisting stage the two companies will continue to intensify their real earnings management.In addition,this article found thatunder the pressure of delisting,ST companies will not only choose the upward earnings management tools to avoid delisting,but also choose the downward earnings management means to withdraw from the market.This depends on the Group’s overall strategy and the company’s future development plan.Finally,this article found that although ST company use of earnings management to restore listing qualifications,it can not explain its future business is in good condition.And ST companies delistingthrough the earnings management,it also can not explain its future business performance will be bad.Through the research,it is possible to provide related policy recommendations to policy advocates to regulate the market order andintain the interests of small and medium investors. |
