The Compound Effect Of Earnings Management And Performance Attribution

Information disclosure,as an important way for enterprise managers to communicate with the public,is an important channel for stakeholders to understand information related to enterprises.However,in the operation practice of enterprises,information disclosure is often modified through earnings management for some specific purposes.In order to avoid delisting risks,some listed companies "take off their caps" in the short term through improper earnings management.At the same time,the management usually modify the causes of "take off their caps" in the disclosure of information,so as to cover up the realization of the enterprise’s potential goals in a way of compound behavior.After the implementation of the New Securities Law,the focus of regulators has shifted from profitability to going concern,so the standards of financial indicators used by exchanges to warn listed companies of risks have been revised accordingly.This paper will take Huangtai Liquor industry As a case to reveal how the listed companies after "wearing hats" achieve their goal of controlling information disclosure by using improper earnings management and self-interested performance attribution,and provide reference for stakeholders to identify this situation and take countermeasures.Through the analysis of the compound behavior of earnings management and self-interested performance attribution of Huangtai Liquor industry and its effect,this paper finds that: First,the liquor industry has less analysis noise and huangtai liquor industry has very rich compound behavior practice,so the case has outstanding typicality.Second,in the face of delisting risks and adjustment of industrial policies,the self-interested performance attribution implemented by enterprises and the potential goals of accrued earnings management and real earnings management implemented to achieve specific goals are to cover up the real operating and financial conditions of enterprises.Third,although compound behavior can help enterprises achieve specific goals,it significantly reduces debt repayment index,profit index,operating index and growth index,and enterprises are plunged into great performance uncertainty due to the changing main business direction.Fourthly,because Huangtai liquor industry continues to face delisting risks and risks regulated by industry policies,it has been struggling to deal with these risks for a long time,leading to confusion in company management,prevalent speculation and strategic myopia,which has led to the company continuing to implement various improper earnings management behaviors.Fifthly,earnings management behaviors implemented by enterprises are often non-recurring behaviors,and management is easy to find opportunities and excuses to damage the quality of information disclosure by taking advantage of performance attribution.Based on this,this paper suggests to improve the capital market information disclosure system,delisting system and supervision system: stakeholders should pay more attention to the corresponding relationship between financial information and non-financial information,in order to test the quality of information disclosure;The quality of supervision by internal and external supervision institutions of enterprises should be improved;In enterprise oneself production manages and management respect,should improve oneself to manage efficiency and core competitiveness hard.