Research On Earnings Management Of Listed Companies Based On Fair Value Measurement

At present,with the strengthening of economic ties and increasing interdependence,crossborder trade has become very common.With the improvement of our country’s economic status in the world and the strengthening of international economic coordination mechanism,and the consistency of domestic economic rules,China has introduced a lot of fair value.Different from the historical cost measurement,the fair price is more tender and can use the financial creation,which makes the accounting income more real,is beneficial to the listed company’s capital preservation,and enhances the decision-making usefulness.However,there are still some imperfections in the application of fair value,such as strong subjectivity of fair value,poor Operability,high information cost,etc..Among them,in recent years,listed companies use fair value for excessive earnings management so as to control the phenomenon of profits emerge one after another,causing concern from all walks of life.In order to better study this issue,using the method of literature research,drawing on the research results of domestic and foreign scholars in fair value and earnings management,and selecting Youngor company as the research object,a case study on the impact of fair value on earnings management of listed companies.First of all,it describes and analyzes the basic financial situation of Youngor company and its means of earnings management by using fair value,taking its equity investment and accounting measurement as the starting point,this paper uses qualitative analysis method to analyze the problem of excessive earnings management by fair value of listed companies in our country at present,and based on the financial data of Youngor Company,to find out the Quantitative analysis of excessive earnings management by fair value,the means by which earnings are manipulated.Using the method of comparative analysis,this paper compares the fair value measurement model adopted by younger and the two measurement models deducting the proceeds from the disposal of the financial assets available for sale,this paper summarizes the influence of Youngor’s earnings manipulation on the stock price,the development of the enterprise,the reaction of the market and the event.Through the relevant theoretical elaboration and case analysis,this paper draws the following conclusions: The application of fair value is not the direct cause of earnings management of listed companies,the more subjective and poor Operability of fairvalue measurement model,these problems lead to the management using fair value for profit manipulation,accounting information distortion.Under the pressure of debt motive,profit motive,executive compensation motive and smooth profit motive,youngor chose to manage its earnings.On the basis of the analysis of Youngor as an example,this paper summarizes and obtains the following suggestions: to control the excessive earnings management of listed companies by using fair value can improve the internal management of fair value measurement of listed companies,and improve the accounting standards,improving the macro-environment.