Identification Of Earnings Management Behavior Of ^*ST Changyu

Earnings management and delisting system are two inseparable topics in academic circles.Listed enterprises usually manipulate their reported earnings based on different motives,and the most common motivation is to avoid delisting,that is,"take off the hat".Due to the increasingly perfect structure of the domestic securities market and the increasingly diversified and hidden business practices used by the company’s management,many "rigid but immortal" companies appear in the investment market.However,this short-term turnaround from loss to profit does not fundamentally improve the company’s actual operation,but is not conducive to the true reflection of the company’s financial information,And it will hurt the interests of the company and investors.Among them,ST shares are the "hardest hit area" of earnings management,and the end of the year is the high incidence period of ST company’s shell preservation war.Government subsidies,asset disposal,debt restructuring,related party transactions and so on are its usual tactics of shell preservation.Out of interest in the case of ^*ST Changyu,the author found that its net profit has always been in the situation of "huge losses for many years and small profits in the short term" in recent ten years,which is more in line with the characteristics of earnings management.Therefore,the author decided to sort out and analyze the behavior and disclosed financial data of ^*ST Changyu in recent ten years,so as to confirm the fact that it has earnings management behavior and provide investors with a way to identify it.Firstly,starting from the research background and significance,this paper points out the particularity and referential of the case,and explains the innovation and shortcomings of the article.Then,through the summary of relevant literature and theoretical elaboration,it provides a theoretical basis for subsequent case analysis.Next,it analyzes and understands the background of the fishery industry,briefly describes its operation status and hat removal process on the basis of the macro conditions of the industry,and reveals the fact that its continuous operation has significant uncertainty.On this basis,it uses the empirical identification method combined with the financial statements to identify the earnings management behavior,and identifies ^*ST Changyu mainly through the provision for asset impairment Using related party transactions and selling equity to carry out earnings management,finally draw research conclusions and put forward reasonable suggestions to investors.This paper aims to provide ideas and methods for small and medium-sized investors to distinguish the behavior of enterprise earnings management,enhance the ability of investors to distinguish the real earnings of enterprises,enable investors to correctly identify the real profits of enterprises,and improve the prudence,professionalism and enthusiasm of market investment in the environment of untimely transmission of market information and asymmetric information,Make investment decisions that are most beneficial to themselves,and help promote the sound development of the capital market.