A Study On Picking Hats Behavior And Performance Impact Of ST Santai Holding

Since the reform and opening up,Chinese capital market has been established rapidly because of the strong support of the state for the development of economic market.But at the same time,due to the immature development of the capital market,there are still some loopholes in the market supervision.These loopholes provide convenience for listed companies to manage earnings.The improper use of earnings management will affect the quality of accounting information and damage the interests of investors in the market.Due to the special ST system in China’s securities market,enterprises facing delisting risk are given a "delisting rectification period".In order to protect scarce "shell" resources and achieve the goal of turning loss into win,many loss making enterprises will adopt various means,including some earnings management means.Enterprises avoid delisting risk by means of earnings management,which can improve their business performance in the short term,but in the long term,it can not completely improve their business situation.In recent years,there are a few companies that have been specially treated in the capital market of our country,and there are also many companies that take off stars and hats.Whether the operating performance of these companies has improved remains to be discussed.The phenomenon of "delisting difficulty" in the capital market is bound to attract the attention of many stakeholders.Therefore,the research on earnings management of ST company in this paper has certain theoretical and practical significance.The purpose of this paper is to study the earnings management of ST company and the impact on the performance of this behavior,which can be a warning to ST company,investors and regulators.Through the case study of the case company,it can be extended to other ST companies,government and other regulatory departments in the whole market.To provide ST company with response ideas,to improve the market mechanism,regulatory mechanism to provide relevant suggestions.This paper mainly uses the method of case analysis,the first part is the introduction,which introduces the research background and significance of the article,summarizes the research methods and contents,and summarizes the relevant theoretical basis and domestic and foreign literature.The second part is the introduction of the case company’s decapitation behavior.Firstly,it introduces the background and development path of the case company.Secondly,it combs the decapitation behavior of the company in detail,from the crisis of facing the decapitation to the real decapitation.Finally,it successfully decapitates the behavior of the case company in detail.On this basis,this paper analyzes the means of the case company’s hat lifting behavior.The third part explores the performance impact after their behavior.The fourth part puts forward some suggestions for this case.At last,the conclusion is made.In recent years,after a statistical survey of companies taking off stars and hats in China’s capital market,and consulting a large number of relevant literature,this paper selects Santai holding,which was implemented delisting risk warning in 2017,as the case study object.Based on the introduction of the background of China’s ST system,this paper describes the process of taking off hats of sample companies.This paper analyzes the earnings management methods used by Santai holdings in the process of decapitation,mainly including related party transactions,asset restructuring,provision of asset impairment losses and sale of fixed assets.On this basis,the financial performance and market performance of Santai holding are studied.The results show that although the company takes advantage of earnings management to improve its performance,it does not solve the problem in essence.In the long run,the company does not improve its operating performance.Only by improving internal management can the company fundamentally change its financial performance.Finally,this paper gives some suggestions on the earnings management of ST company from three aspects: listed company itself,investors and external regulators.