Study On Performance Attribution And Earnings Management Compound Operation To Cover Bond Default Risk

Bond markets have boomed in recent years,easing the pressure on companies to raise money,but defaults have also become more frequent.In particular,a number of companies with good credit status have suddenly defaulted on their bonds,triggering panic among investors and causing turmoil in the market.In this paper,the most typical Tunghsu Optoelectronic bond default event is taken as an example.Through in-depth analysis of the performance attribution and earnings management behavior of the case company,the deep-rooted reasons for its "sudden" bond default are studied.Studies have found that the Tunghsu Optoelectronic through partial performance attribution and positive environmental factors hidden in the attribution to cover the company’s earnings management behavior,and through the provision for impairment is not reasonable and sales to relax the earnings management behavior of maintaining good performance to match performance attribution,this composite operation covers the company’s debt default risk.In the performance attribution text information,the company renders the benefits brought by earnings management behavior as the results of the company’s own efforts,enhances the recognition of information users to the company’s operation,weakens the change of performance data caused by earnings management,and in turn,earnings management behavior is combined with self-interested performance attribution.This kind of compound operation makes the company do not show the real business situation,and hides the risk of bond default;It also made regulators slow to identify the risk of bond defaults,hurting the interests of investors and creditors.The contribution of this paper is that it is the first time to study the phenomenon of bond default from the perspective of performance attribution and earnings management,which further broadens the research scope of bond default.It provides a new perspective for investors to evaluate the companies that issue bonds,helps them understand the real business conditions of companies,identify bond default risks in time,and safeguard their own interests.To improve the importance of self-interested performance attribution and earnings management combined operation brought by bond issuing companies,help them correctly examine the bond default problem,and help the company to develop in the direction of long-term health.Promote the relevant regulatory agencies to strengthen the supervision and control of bond issuing companies and improve our relevant systems,laws and regulations.