Research On The Identification And Means Of Earnings Management Of Agricultural Listed Companies

China is a country with a large population,and agriculture is the foundation of the national economy.For the 16 consecutive years from 2004 to 2019,the CPC Central Committee and the State Council issued the No.1 Document of the Agriculture-related Central Committee to focus on the issues concerning agriculture,rural areas,and farmers.The government’s insistence on supporting the agricultural industry as the focus of work is enough to highlight the importance of the agricultural industry.However,due to the influence of the natural environment and industry environment,the profit level of agricultural listed companies in China is generally lower than that of other industries,resulting in the continuous emergence and huge amount of earnings management activities in this industry.Listed agricultural companies such as Guangxia(yinchuan)Industry,Ecological,Greenland and Wanfu Biotechnology have been reported to have earnings management problems,which seriously affected the stability of the capital market and hindered the sustainable and healthy development of the agricultural industry.Therefore,the issue of earnings management of agricultural listed companies needs urgent solution.Based on this,this article selects the Chuying Agro-Pastoral of the animal husbandry sector in the agricultural industry as the research object.First,it analyzes the company’s motivation for earnings management from three aspects: avoiding the effects of delisting,financing,and pork price cycles.Second,it uses the surplus.The management test model initially identifies whether the young eagle farming and animal husbandry conducts earnings management behaviors,and then analyzes the company’s abnormal situation by calculating financial ratios.Finally,it starts from the project indicators of the income statement and balance sheet,and analyzes its fluctuation laws to identify the company’s possible earnings management.Behavior;again,based on the analysis of the identification of earnings management to find out the operating methods of earnings management,it was found that the company mainly conducted earnings management through two capital cycles to create profits.Firstly,a large number of raised funds were used to build and sell pig pens,and successfully turned the raised funds into freely usable funds,and obtained noncurrent asset disposal gains to complete the first capital cycle.The second is to use the funds obtained from the sale of fixed assets for investment,and classify them as financial assets available for sale,and then sell them to related parties to obtain high investment income and complete the second capital cycle.After the company’s earnings management behavior was revealed,the stock yield fell sharply,indicating that the market is not optimistic about earnings management behavior,and earnings management is not conducive to the company’s main business development.Based on the previous research on the earnings management behavior of the case company,the thesis proposes targeted governance and prevention and control measures for the earnings management of agricultural listed companies: First,adjust the company’s internal control system from the corporate governance level,and standardize the earnings management in To a reasonable extent,avoid excessive earnings management;second,from the social supervision level,it is proposed that accounting firms can disclose matters that are prone to earnings management in key audit matters in practical work;third,at the government supervision level,The accounting standards for financial assets for sale and biological assets provide several suggestions for improvement.