ST Dongshu's Real Earnings Management Case Study

With the continuous development of the securities market,the quality of accounting information is real and effective is particularly important,1 March 2020,the implementation of the "securities law" requirements of the regulation of listed companies and the penalties,the new "investor protection" discussed,establish a "results oriented" investor protection system,continue to promote the stable development of financial markets,strengthen supervision and punishment,in order to improve the quality of the information disclosure of listed companies,protect the legitimate rights and interests of investors,thus improving the quality of the listed company,ensure the high quality development of capital market.At the same time,as the country "made in China 2025" and "4.0" industrial policy is put forward,such as machine tool manufacturing industry as an important supporting industry of equipment manufacturing industry,has become a national comprehensive national strength and an important symbol of national greatness,but in recent years,with the weakness of machine tool manufacturing industry,many machine tools in manufacturing enterprises is faced with many years of losses and severe situation,in the short term can’t shift operating conditions,tend to take surplus more than real management means to turn a profit,and surplus management behavior not only caused the accounting information distortion,had destroyed the order of the securities market and damage the interests of investors.Therefore,it is particularly important to strengthen the identification and supervision of earnings management behaviors of listed companies.On the basis of referring to research literature at home and abroad,this paper adopts the method of combining empirical analysis and case analysis to select ST eastern number,which also faces the dilemma of years of loss,as the research object.By ST east several abnormal net profit and cash flow and anomaly indexes of non-recurring profit and loss project identification model and empirical test,think it is in real earnings management to achieve profitability,on this basis,the number of ST east implement real earnings management motivation and means for concrete analysis,ST east imposed by the number of debt restructuring,affiliated transactions,the government subsidy and reducing methods of discretionary expenditure successfulturnaround.And through the event study found that the listing of its successful checking this event did not bring good market reaction,as well as to the number of ST east real earnings management after long-term performance analysis found that its profit ability,operation ability,solvency and development are relatively low,indicates that the development of subsequent to the company itself not only caused serious adverse economic consequences,but also hindered the economic order of the securities market,has affected the investor’s investment decision,so this event reflects the problems were analyzed,and finally corresponding countermeasures and Suggestions.