Excessive Earnings Management In CNPC

With the maturity of the theory of earnings management, more and more enterprisesuse the theoretical reference to the actual operation, to seek interests for enterprises. Thecurrent market condition is open, corporate ownership and management system separateperfectly, enterprise senior managers perform the responsibility as agents, choose tooperate earnings means universally in enterprises, especially large enterprise groups,however, on the one hand, appropriate earnings management helps to perfect andpromote the rapid development of the capital market and accounting standards and, onthe other hand, the excessive earnings management will cause the distortion ofaccounting information, damage the enterprise stakeholders, undermine the marketorder of fair competition. In twentieth Century90years, China’s listing Corporationaccounting problem of false information continuously exposed, some listing Corporationpunished by the CSRC because of false reports or false accounting information.This maybe only the tip of the iceberg of accounting fraud, but enough to explain the universalityof earnings management.Therefore, this paper gives a detailed exposition of the topic through literatureresearch, case analysis, and the corresponding qualitative and quantitative analysis. First,recalling the definition of the relevant theoretical knowledge that already exists at thisstage of earnings management, including motivation and means, so we can have a certainunderstanding on t research topics, then, combined with relevant theoretical overview ofearnings management propose what is excessive earnings management, earningsmanagement can be clearly understood, especially the adverse effects of excessiveearnings management. Next, by actual cases of CNPC, discussing the actual operation inthe enterprise by three means: reorganization of assets, the operation results of businessoperations, and related party transactions. more important is on the basis of actualcases, we can adjust the harmful results to investors and society outside. Then combininginternal and external environment, raising the causes that company operates earningsmanagement, Finally, combining with excessive earnings management motivation tosupervise the guiding vision put forward measures to guard against excessive earningsmanagement. This paper mainly study the adverse effects of excessive earningsmanagement, such as accounting information distortion can cause harms to investors, corporate tax avoidance can result the lacking of social responsibility,more important iswe should take the necessary precautions to avoid it.This paper consists of five chapters, the first chapter introduces the researchbackground, significance，review of the literature on Earnings Management and train ofthought, research methods and so on.The second chapter reviews the theory of earningsmanagement, including the basic concept of earnings management, earningsmanipulation of motive, means and other important theory, focusing on the excessiveearnings management definition standard, definition, elements in this scope. The thirdchapter analyses the excess earnings manipulation through the typical case in CNPC.This chapter first described the basic situation in the oil, next，analysis the measures andeffects of the excessive earnings management. Fourth section analyses thecauses excessive earnings management phenomenon of the oil group, the fifth chapter onthe causes of earnings management, and puts forward the Countermeasures of enterprisemoderate earnings management.