Research On Shandong Molong’s Asset Impairment And Earnings Management

The behavior of listed companies to manipulate profits through earnings management has always existed.Therefore,earnings management has become the focus of attention of the whole society.Due to the choice of accounting policies for enterprises,excessive earnings management has appeared in the capital market,which reduces the reliability and authenticity of accounting information to a certain extent,making it difficult for users of accounting information to make accurate investments Decisions,in turn,will harm the interests of investors and are not conducive to the healthy development of the capital market.As my country’s accounting standards have a certain degree of flexibility,information is asymmetry,and the effectiveness of my country’s capital market has not reached a strong and effective stage,the accounting information for earnings management using asset impairment is inside information and cannot be passed market prices.Reflected,and is not easy to be identified by external financial investors and regulatory agencies,therefore,listed companies began to use asset impairment for earnings management.Based on this,this article selects Shandong Molong as a case,and analyzes the case,supplemented by literature research and comparative analysis.First,sort out and summarize the relevant theories and empirical research results of asset impairment and earnings management at home and abroad;secondly,take Shandong Molong as a case to carry out research and analysis,and understand the basic situation of asset impairment.The motivation to use asset impairment for earnings management began to cut in,and combined with financial data to analyze its earnings management behavior and the final economic consequences for the case company;finally,the following conclusion was reached,Shandong Molong used asset impairment for earnings Management includes three major points:protection motives,financing motives,and personal interest driving.Among them,the hysteresis of accounting standards and supervision,nonmandatory information disclosure,and defects in the company’s internal structure provide Shandong Molong’s use of asset impairment for earnings management.Condition.Shandong Molong mainly conducts earnings management through the impairment of four assets of receivables,inventories,fixed assets and goodwill.Although the behavior of manipulating profits through asset impairment has retained its listing qualifications,its financial status has not substantially improved.The overall development trend is also extremely unstable.In recent years,its stock price has continued to fall,investors’ willingness to invest has weakened,and refinancing capabilities have declined,which is not conducive to the implementation of development strategies.This article proposes relevant suggestions in five aspects: improving the delisting evaluation system,further optimizing the accounting standards for asset impairment,standardizing the mandatory information disclosure system,focusing on the performance of the follow-up use of long-term assets,and strengthening supervision and punishment.Earnings management-related policy formulation provides reference to promote the healthy development of my country’s capital market.