Research On Earnings Management Of Non-recurrent Gains And Losses In ~*ST Companies

With the continuous improvement and perfection of China's securities market,the regulatory authorities have also introduced relevant laws and regulations to effectively restrain and manage the market.The implementation and removal of delisting risk warning system is based on the company's net profit.On the one hand,its purpose is to urge ~*ST company to change its operating conditions,on the other hand,it is to remind investors to be cautious when investing in such companies and pay attention to their investment risks.Due to the scarcity of shell resources,many deficit companies which has been dubbed the delisting risk warning losses in order to avoid being delisted crisis,urgently need to improve the company's profit in a short time,achieve the regulatory standards and the requirements of investors,so as to keep the existing listing qualifications.Hence,there is a strong incentive to implement earnings management.At the same time,China's listing rules removes the condition that "net profit should be positive after deducting non-recurring profit and loss",further reduces the standard for ~*ST companies to withdraw delisting risk warning,which also provides operating space for companies with earnings management motivation to a large extent.Based on this background,this paper takes ~*ST Tian Shou as the research object and uses relevant financial data to make an in-depth analysis of the motive,means and influence of the non-current profit and loss earnings management.This paper selects 37 ~*ST companies that successfully took off their hats in 2017 to prove the case,which prove the phenomenon of using non-recurring profits and losses to implement surplus control to reverse huge losses has been widespread.By analysis of ~*ST Tian Shou's 2016 profit,we found this profit is generated with the aid of non-recurring gains and losses.While it avoids being suspended processing,but the income is not continuous,its operating conditions of a few years after pick hat didn't get very good improve,fundamental problems that exist in the company management does not effectively solve,so it is not good for the company long-term development in the future.Finally,this paper puts forward some suggestions for the management of ST's non-current profit and loss earnings.It is hoped that through the analysis of ~*ST Tian Shou,we can find a better way to effectively restrain the behavior of earnings control,eliminate the enthusiasm of earnings management of ST company,so as to guide listed companies to actively improve the operating capacity of main businesses.This paper mainly analyzes the whole process of ~*ST Tian Shou takes off the hat.In the past,most of the researches on earnings management of non-recurring profit and loss are mainly empirical analysis,focusing on the study of its motivation and means,but the research on the whole process of earnings management behavior and its impact is not sufficient.Therefore,this paper mainly focuses on the whole process of ~* ST's earnings management from before to after,analyzes the motivation and specific means of non-recurring earnings management,and focuses on the analysis and study of the serious impact of earnings management behavior,hoping to provide reference for other companies in financial difficulties.