*Study On The Issue Of Non-recurring Profit And Loss Earnings Management Abused By ST Due To The United States' "unhat"

Non-recurring profit and loss is a key factor affecting the operating performance of listed companies.Extraordinary items of earnings management means conducting earnings management through the recognition of specific items of non-recurring profit and loss.Under the current situation,the non-recurring profit and loss items are highly operable and unpredictable.Therefore,this behavior has become an important way for *ST companies to varnish their accounts and avoid being delisted,which seriously harms the development of the securities market and violates the interests of small or medium investors.The 2019 Central Economic Conference clearly pointed out the strategic directions for further deepening reforms in the capital market.The conference proposed that it is necessary to improve the basic system of the capital market,the quality of listed companies,the delisting system,and to form a capital market environment of "selecting the superior and eliminating the inferior." Hence the accurate definition and identification of the non-recurring profit and loss are pretty crucial.In this paper we collect and analyze the data of 37 *ST companies that have successfully uncapped(namely “avoiding the risk of being delisted”)in Shanghai and Shenzhen Stock Market in 2018.Among these companies,we select *ST Yinmei,which has a high non-recurring contribution rate,to be the object.By studying how *ST Yinmei conducted extraordinary items of earnings management under the dilemma of negative net profit and the risk of being delisted in 2016-2017,we analyze the operations and economic consequences behind its uncapping,and reveal the deficiencies in accounting standards and market vulnerabilities,which cause the possibility for the company to conduct such operations.We also propose the countermeasure to prevent listed companies from using extraordinary items of earnings management as follows: formulating the accounting standards for non-recurring profit and loss information disclosure;normalizing the recognition and identification of non-recurring profit and loss;strengthening the responsibility of accounting firms;and improving the delisting system of listed companies.Overall,listed companies with deficit mainly use extraordinary items of earnings man agement in order to avoid delisting supervision,whereas the actual business performance and sustained profit ability of the company has no substantial improvement.Neither could it produce a sustained positive impact on the company.We hope that *ST companies could recognize this and focus on improving the company's true operating performance rather than relying on earnings management to turn losses into profits.In addition,after the above studies,this paper proposes several problems: the loopholes in the delisting system,incomplete definition and identification of non-recurring profit and loss,and insufficient external audit supervision.Thus,in the end we put forward the following suggestions:improving the current delisting warning system;clarifying the definition and identification of non-recurring profit and loss;and improving the quality of external audit supervision.Only in this way could we protect the rights and interests of investors better and promote the healthy development of the capital market.