Analysis On Earnings Management Of CH Company

Because of the rapid economic development,the market environment of our country's enterprises is also changing gradually.The change of the external economic market causes the enterprises to increase the risks they face.In addition,the phenomenon of earnings management has become more and more significant.As an important financial accounting element,assets affect the future management of enterprises to a certain extent.At the same time,asset impairment criteria also have great subjectivity and maneuverability A enterprise can bring certain short-term benefits to the company by using such methods as asset impairment,false increase in income,delay in recognition of income,etc.Therefore,the use of earnings management to increase profits has become one of the common methods used by enterprises.With the gradual improvement of China's capital market,the quality of accounting information disclosure by enterprises has been further strengthened.As investors can't obtain accurate disclosure information in the market fairly and fairly,therefore,in China's stock market,most investors can only rely on the accounting information disclosed by enterprises to make judgments and choices.The accounting information has also become the main channel for outside investors to understand the enterprise information,and the authenticity of the enterprise accounting information has become the most concerned factor.However,in recent years,more and more enterprises,in order to make the company's accounting information more substantial,can attract more investors and other reasons through earnings management means to whitewash statements,as a result,the accounting information of the enterprise has lost its facticity and fairness,and can't reflect the financial status of the enterprise truly,so that the users of external statements can't make correct investment judgment and decision.It also puts more financial risk on the company's creditors,andregulators have little to do with the companies.In such an environment,through the literature analysis and research at home and abroad,using the method of literature research model analysis,this paper further interprets the financial data of CH company from 2012 to 2017,and analyzes the development experience of CH Company,this paper analyzes the methods and motives of its earnings management behavior,and tests the financial data of CH company by three models to judge whether it has earnings management behavior and the degree of earnings management.The study shows that CH company has excess earnings management behavior of asset impairment and non-recurring profit and loss instruments.Finally,the paper puts forward some corresponding suggestions to solve the earnings management behavior of CH company.