Research On The Motivation And Response Of Earnings Management Under The Asset Impairment Treatment Of H Company

With the transformation of China’s social economy from the pursuit of high growth to the pursuit of high quality,the issue of earnings management of listed companies has gradually become a key research topic in the reform of the capitalist market system.Moderate earnings management is helpful to reasonably manage profits and improve the relevance of accounting information.The behavior of excessive earnings management will greatly reduce the reliability and authenticity of accounting information,which is not conducive to the healthy development of the capital market.Despite the excessive earnings management behavior of listed companies has the regulation by the parties,but in the capital market is still widespread the phenomenon of excessive earnings management,former enron through the affiliated party transactions operation profit,after the sig pharmaceutical inflated revenues,Related Party Transactions,huge surplus management put an end to all these years,why are still common in practical level?Marx once said that the problem is determined by subjective and objective factors.From the subjective and objective perspective,this paper starts with one of the manipulation means of earnings management--asset impairment,and studies the mechanism,motivation and countermeasures of earnings management in the process of asset impairment treatment of listed companies.Based on the review of asset impairment and earnings management at home and abroad on the basis of related literature,defines the key concepts and basic theory,selection of asset impairment earnings management the typical case of H company,combined with its asset impairment move three time node to the company and its average data contrast,comparable companies and industry based on the analysis of the case company H company earnings management motivation and consequences in the processing of asset impairment,finally further excavated based on asset impairment in processing of earnings management advice.This paper consists of the following six parts:Part one is an introduction,including the research background,the reality and the theoretical significance.It sorts out and summarizes the theoretical achievements and practical experience in this field at home and abroad,and state the train of thought and means of the text.The second part is a summary of related theories,which comprehensively sorts out and analyzes the key concepts,basic theories and theoretical analysis of asset impairment and earnings management,and lays the theoretical support for subsequent research.In the third part,the general situation of company H and its impairment treatment,the ni end of earnings management was found in the asset impairment treatment,the overall analysis of the company’s earnings management behavior of using asset impairment and the analysis of asset impairment detailed projects,and the impact path was analyzed based on the company’s strategic characteristics and performance.The fourth part is based on the earnings management motivation and consequence analysis of H company based on the asset impairment behavior,combining with the industry mean and the data of comparable companies in the industry for comparative analysis,to reveal the four major motivations of H company to use asset impairment for earnings management,and finally reveal the internal and external consequences of earnings management.In the fifth part,company H’s Suggestions on earnings management based on the motivation of asset impairment are put forward from the perspectives of improving the standards,optimizing the supervision system of capital market,improving internal governance and strengthening the level of external audit supervision.The sixth part is conclusion and prospect.This paper adopts the method of combining normative research and case analysis to deeply analyze the earnings management behaviors and motivations of listed companies in the wind power industry based on the perspective of asset impairment,aiming to improve the existing research deficiencies,and to put forward some referential Suggestions for regulating the application of asset impairment accounting practice in listed companies.The innovation of this paper mainly consists of three aspects.First,it complements the lack of existing research in the wind power industry.Secondly,this paper USES the same industry comparison method to analyze the consequences of the earnings management behavior of the case company,which indirectly confirms the fact of excessive earnings management of company H.Finally,detailed the research scope,most of scholars at home and abroad the impairment of assets as a whole,which leads to the results of the study is relatively general,this article will provision for bad debt and inventory write-down as the key object of study,relative to illiquid assets impairment,more conducive to observation of asset impairment handling characteristics,dynamic and consequences.