A Study On Earnings Management Behavior In Several "Special Treatment-Special Disposal" In Qinghai Spring Medicinal Resources Technology Company

In order to protect the interests of investors,the Securities Regulatory Commission(CSRC)requires special treatment of stock trading of listed companies with abnormal financial and other conditions.However,because the current delisting system is relatively loose and the information disclosure system is not perfect,the earnings management means implemented by ST's to preserve shell resources are becoming more and more diversified.This paper mainly adopts the case study method to study the earnings management behavior of companies such as Qinghai Spring,which was *ST or ST three times in the 17 years of listing.Firstly,this paper sorts out the process of being*ST or ST for three times.Secondly,it analyzes the earnings management methods adopted for special disposal and the impact on the short-term profit and long-term development of the company.Through the summary analysis of Qinghai Spring earnings management behavior,in order to safeguard the interests of investors and curb the company's earnings management behavior,the company,the CSRC and the accounting firm respectively made specific recommendations.This paper sorts out the time points,shareholder changes and industry changes of Qinghai Spring,and divides the three “ST-special disposal” process in Qinghai Spring into “2004.9-2012.3” and “2012.5-2015.3” and “2015-2017”.For the first time,through the reversal of external guarantee losses,government subsidies and related party transactions,three kinds of earnings management measures to increase non-recurring gains and losses were selected.in 2012,successfully disposed special treatment.Party transactions include three ways to increase non-operating income,debt restructuring and asset replacement.For the second time,through accounting errors,bankruptcy reorganization and asset restructuring,including major earnings management tools such as equity adjustment,sale of non-performing assets,backdoor listing and asset sales,in 2015,successfully disposed special treatment.For the third time,Qinghai Spring achieved the special disposal by opening up new business and increasing non-recurring gains and losses.The earnings management method implemented by Qinghai Spring has indeed played a role in quickly turning losses into profits.However,it can be seen from being ST again and again that the earnings management method is only for short-term profit-making.Finally,this paper believes that if we want to fundamentally curb such behaviors,we should adjust our strategic concepts,improve our multilateral business and optimize our shareholding structure,and reduce the concentration of ownership.We will strengthen the supervision of the CSRC.On the other hand,the delisting system should be improved and the information disclosure system should be improved.Thirdly,in protecting the independence of certified public accountants,the supervision of accounting firms should be strengthened and the quality of accounting firms should be improved.