Research On The Earnings Management Of ST Enterprises Under The New Delisting Rules

According to the requirements of China’s Securities Law and Company Law,the listing supervision of enterprises is strict,and the listing qualification is very valuable.In order to protect the shell,companies use the means of earnings management one after another.However,China’s original delisting system is weak in delisting,which leads to the phenomenon of "shell enterprises,zombie enterprises,undead birds" in China’s capital market.With the launch of the new delisting rules in December 2020,the process of delisting of poor quality listed companies has been accelerated.The implementation of the new delisting rules has improved the delisting standards and simplified the delisting procedures.Based on the relevant theories of earnings management,ST system and new rules for delisting,this paper conducts a case study of ZYD,which has successfully protected the shell twice.It combs the process of ZYD cap and off cap and the basic financial situation of ZYD,and analyzes that under the new delisting system,ZYD will achieve the goal of protecting the shell by means of earnings management in 2014 and 2019.Through the analysis of this paper,ZYD still has the opportunity to manage earnings through the imperfect laws and regulations and the support of policies after the introduction of the new delisting rules.ZYD earnings management leads to the deterioration of the company’s financial indicators,affects the substantial fluctuation of enterprise stocks,and damages the rights and interests of investors and small and medium shareholders.In view of these problems,this paper puts forward some suggestions,such as strengthening the internal control and supervision of enterprises,standardizing the related party transactions,improving the accounting standards,strengthening the supervision and management of performance commitment,and optimizing the new delisting rules.