Research On Accounting Manipulation Before The Reduction Of Executives Of Palm Technology Company

In recent years,China's economy has developed rapidly and corporate competition has become increasingly fierce.Enterprise technology and management models need to carry out reform and innovation,constantly strengthen their own competitiveness and stabilize their corporate status.In such a complex and unpredictable economic environment,many senior managers are reluctant to take on unknown risks,and the arrival of full-distribution stocks adds a new way for executives to profit: reduce holdings.Since the equity restructuring in 2005,there have been a lot of senior management reductions in China,and even a number of corporate executives have opened the clearance-type reduction.According to the data of Dongfang Wealth Network,in the past two years,a total of 881 listed companies have experienced the phenomenon of executives reducing their shareholdings.According to wind statistics,the number of enterprises that have suffered from the reduction of executives' clearances to no actual controllers has also increased year by year.In 2014,there were 119 companies,124 in 2015,144 in 2016,and 155 in 2017(Jia Guoqiang,2018).The large-scale reduction of executives has had a certain impact on market stability.On the other hand,for outside investors,it is also a serious violation of their interests.I sorted out a few major executives' reductions during the2015-2017 period.Based on the theory of executive reduction,accounting manipulation,and signal transmission,this paper selects Palmtech as the case analysis object.The article analyzes the company's financial situation,information disclosure before the reduction and the impact of the reduction.The accounting manipulation methods that may exist before the executives reduced their holdings were studied.The research results are as follows:(1)The palm technology executives use information asymmetry,high-level reduction to obtain large returns,resulting in losses for small and medium shareholders.(2)Palmtech executives manipulate stock prices through information disclosure.In the 2015-2017 few executives,the company will disclose some positive news,stimulate the stock price to rise,and the executives will reduce their holdings.(3)The company has inflated corporate value through capital operations.In the process of mergers and acquisitions,Palm Technology is also expanding its equity and expanding its corporate chassis.The combination of mergers and acquisitions and equity expansion will help escort the palm-skilled technology executives.(4)Zhangqu Technology manages the profit of earnings through the impairment of goodwill.PalmTech does not accrue goodwill impairment when its net profit grows.When the operating conditions deteriorate and the net profit declines,a large amount of goodwill is impaired.Finally,the paper gives some suggestions from two perspectives inside and outside the company.The company externally recommended that the regulatory authorities strengthen supervision and restrictions on executives' reduction of their holdings,and recommended that external investors adhere to value investment and see the actual situation of the target company.The company's internal recommendations for company executives set a long-term vision,seeking long-term development of the company to reject short-term gains.In addition,it is recommended that the company's internal system be improved.Improve the information disclosure system to supervise the disclosure of executives' reduction of holdings,and establish an effective independent director system to truly protect the interests of minority shareholders.I hope to contribute to the stable development of China's capital market.