Research On Earning Management Of Asset Impairment Of Listed Companies

The current "impairment of assets" standard was issued in 2006.This standard is intended to reduce the use of asset impairment in earnings management.But with the deepening of research in recent years,many scholars found that this behavior still exists.More and more enterprises using asset impairment for earnings management and even financial fraud are gradually exposed by scholars.Therefore,this paper aims to explore the existence of the listed company's asset impairment earnings management behavior,as well as its specific motivation,means and consequences,and provide some reference for the improvement of accounting standards related to asset impairment.In order to explore whether the behavior of using asset impairment for earnings management still exists under the current standards,this paper takes Provision for Inventory and impairment for fixed assets as an example,and uses the model of McNichols &Wilson(1988)to investigate the asset impairment accrual and reversal behavior of the A-share listed companies in 2008-2018.It is found that the behavior does exist.Therefore,this paper uses the discretionary accruals separated by the model above and the specific earnings management motivation to test the regression,and finds that there are obvious motivations for big bath and turning around losses in the accruals of Provision for Inventory and impairment for fixed assets.In addition,there are management changes in Provision for Inventory.Among them,the enterprises with the motivation of big bath or management change tend to accrue more asset impairment,while the companies with the motivation of avoiding losses tend to accrue less.Besides,this paper takes Shandong Molong as an example to discuss its asset impairment policy and financial situation in 2010-2018,and analyze the motivation,means and consequences of earnings management.Finally,the paper concludes that in order to get rid of the risk of delisting,Shandong Molong Corporation has the behavior of abnormal accrual of bad debt provision,provision for Inventory,impairment for fixed assets and goodwill depreciation reserves in many years.As well as through the reversal of bad debt provision and provision for Inventory to turn losses into profits.However,After the use of asset impairment earnings management,Shandong Molong's financial situation has not improved,and even led to stock price fluctuations,as well as reducing its financing capacity and increasing the investment risk of investors.