A Case Study Of Earnings Management Of ~*ST Lanke Based On Non-recurring Profit And Loss

By the end of June 2019,there are altogether 3632 listed companies in Shanghai and Shenzhen.As the cornerstone of the development of China's securities market,listed companies are of great significance to the development of China's securities market.However,in recent years,more and more listed companies have used non-recurring gains and losses to reverse losses and avoid delisting,which have hindered the disclosure of information in the securities market,prevented the listed companys' operating performance from improving,and made the decision-making process of small and medium-sized investors more difficult.Therefore,research on earnings management of non-recurring gains and losses is conducive to standardizing the accounting of non-recurring gains and losses and surpluses of listed companies,and is also of great significance for improving the disclosure system of non-recurring gains and losses in China's delisting system and accounting standards.The ~*ST Lanke selected in this article is not only a special equipment manufacturing enterprise relying on the petroleum and petrochemical industry,but also a state-owned listed company that uses non-recurring gains and losses for earnings management.~*ST Lanke's business performance has declined year by year since its listing in 2011,and it has faced delisting for two consecutive years of losses in 2016 and 2017.In 2018,it used asset disposal income,investment income and government subsidies and other non-recurring profit and loss items for earnings management,resulting in the company's profitability not being sustainable,and concealing the company's actual operating situation through information disclosure,which reflects the problems of the professional competence of ~*ST Lanke 's management and financial personnel and the company 's internal supervision mechanism.The research on ~*ST Lanke provide some insights for the management of the earnings management behavior of listed companies and the reform of state-owned enterprises.This article uses literature analysis,case analysis,and event research to conduct in-depth research.First of all,after reviewing relevant studies both at home and abroad,the limitations of previous studies are figured out and the research gap isidentified.Based on the review,the research method and content are chosen,meanwhile the significances of this thesis are presented.Second,through the research on the theory of non-recurring profit and loss and earnings management,the author explores the common motivation and common methods of non-recurring profit and loss management.Again,this article focuses on ~*ST Lanke.Through analyzing the annual report of ~*ST Lanke for the past three years,the author grasps the basic situation and operating status of ~*ST Lanke.Then an in-depth analysis of ~*ST Lanke's non-recurring profit and loss management behavior is conducted to summarize the situation of non-recurring profit and loss management,analyze the causes of ~*ST Lanke's non-recurring profit and loss management behavior,and elaborate the impact of the earnings management on the company in the form of results.Finally,suggestions are made for system vulnerabilities and deficiencies in accounting standards regarding information disclosure,problems in management,financial personnel,and internal regulatory systems in the company's internal management,and inadequacies in the supervision of the company's external certified public accountants.The study found that through joint efforts at the macro level,the company level and the company's external CPA supervision level,it can effectively prevent listed companies from generating earnings management behaviors,which can help listed companies find problems and improve operating performance.