Research On The Consequences Of Abnormally High Deferred Income Tax Assets Of Internet Companies

With the continuous development of the domestic and foreign market economy and the arrival of the international information technology era,the Internet industry has emerged and various new Internet-based business models have emerged;companies have a place in the capital market in order to compete for a limited market share,The behavior of earnings management with different financial means appears.Through research,it has been found that listed companies in China have experienced earnings management by adjusting income tax expenses such as Le TV,ST Angang,Chenming Paper,etc.Because the behavior of enterprises to adjust financial performance through deferred income tax projects is relatively concealed,it has not caused investors Sufficient attention has given rise to the use of deferred income tax assets and other items to conduct earnings management within the scope of the standard.However,this kind of earnings management behavior of the enterprise will bring different degrees of impact to the enterprise itself or investors,and it will also break the balance of the order in the capital market.Therefore,timely discovery and prevention of such earnings management behaviors for the protection of investors Interests are of great significance.Baofeng Group went public on March 24,2015,and had a daily limit of nearly 30 days a month after listing.It had created a stock market myth,but the glorious era in the past has long passed.At present,Baofeng Group is in deep financial troubles.Financial mysteries such as negative and net profits are higher than total profits.Through a comparative analysis of the data in the industry,it has been found that: since 2016,Baofeng Group 's deferred income tax assets have risen sharply,accounting for more than ten times the average value of the total assets,showing a significantly abnormal state,so this article selects the industry The typical enterprise in the interior-Baofeng Group,as a case company,combines literature research,case analysis and event research.First,analyze the reasons for the abnormally high deferred income tax assets of Baofeng Group.There are three main reasons for earnings management to improve performance,debt contract motivation and avoid the delisting crisis.Second,analyze the main paths of the abnormally high deferred income tax assets of Baofeng Group.There are two main ways to accrue large asset impairment losses and deductible losses of non-wholly-owned subsidiaries;once again analyze the Baofeng group's deferred income tax from three levels: financial performance,financial indicators and market effects.The economic consequences of abnormally high assets,and obtained the conclusion that the event played a series of earnings management effects such as beautifying financial statements,falsely increasing profitability and solvency,and obtaining excess market returns;finally,based on Baofeng 's deferred income tax assets are abnormally high Issues,it is proposed that companies should enhance their risk management and control capabilities,make reasonable profit forecasts,regularly disclose confirmation details to ensure that the basis for deferred income tax asset confirmation is sufficient,with a view to making investment choices for investors,and deferred income tax asset recognition for enterprises Link to provide experience.