| In case of abnormal financial status or other conditions and stock trading of listed companies at risk of delisting,China Securities Regulatory Commission will take special treatment.For the purpose of avoiding delisting,such companies often take earnings management behaviors to manipulate net profit,supplemented by performance attribution to hide,and the company’s explanation of obvious changes in performance is often self-interested,that is,the good performance of the company is attributed to proper management,poor performance is attributed to external environment and other adverse effects,the two promote each other and have a strong correlation.Investors make investment decisions based on the information in the annual report,and are easily confused by the financial information manipulated by earnings management and the text information that beautifies the company’s image,thus affecting the decision.Existing studies mostly start from earnings management and analyze corporate financial information,but few study performance attribution and the relationship between financial information and performance attribution.Therefore,in-depth study of the operating mode of earnings management and performance attribution is of far-reaching significance for promoting the healthy development of China’s capital market.This paper mainly adopts the case study method and selects Pangang Group Vanadium&Titanium Resources Co.,Ltd.as the research object.It has been ST twice due to loss,and has been removed due to earnings management to turn loss into profit.Its performance attribution also has obvious self-interested tendency,and it is a typical enterprise that uses earnings management and self-interested performance attribution shell after ST implementation.This paper first gives a brief introduction to the case company,then makes an in-depth analysis of the reasons for earnings management and performance attribution behavior,and finds that earnings management is possible under the joint action of various factors of the company.Then,by analyzing the annual report of Pangang Group Vanadium&Titanium Resources Co.,Ltd.,it is found that in order to conceal the real performance of the company,the management has used a variety of earnings management methods to create manipulation space for performance attribution,and the attribution situation is different from the real situation,which is self-beneficial.Finally,based on the influence analysis after the combination of the two,it is found that it only improves the short-term financial data of the company,but does not fundamentally solve the problems of the company’s operation,which damages the interests of investors and the long-term development of the company itself.At the end of this paper,corresponding suggestions are put forward:(1)Continue to improve the delisting system,increase the existing delisting financial assessment indicators,shorten the delisting time.(2)Clarify the restrictive conditions of accounting standards,standardize accounting estimates transactions.(3)For links and enterprises that are easy to generate earnings management,the internal and external supervision should be strengthened to improve the quality of performance information disclosure. |
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