| Earnings management of listed companies, especially the maliciousearnings management in domestic and foreign securities market has becomea common phenomenon. The investors, intermediary and securities can notignore this important problem. This article summarized the basic theory ofthe domestic and foreign research on earnings management, also expoundsthe meanings of the earnings management, the principal part of earningsmanagement, object, basic characteristics, identification of earningsmanagement and attentive matters. Moreover, through the description of theimplementation of malicious earnings management by Yunnan Green Earthbiological technology co., LTD, this paper analyses the implementation ofmalicious earnings management motivation and its impact on the securitiesmarket of our country, reveals the main reason for the implementation ofmalicious earnings management by Yunnan Green Earth biologicaltechnology co., LTD and indicates series of preventive countermeasures forthe malicious earnings management of listed companies in China.In the case of the green earth, we can know the former chairman and shareholders of Green Earth, public accounting firms, law firms, sponsoragencies and relevant government regulators on "malicious earningsmanagement" to defraud the listed qualifications, grab a huge interest fromthe capital market.We urgently need a high level of design by the relevant regulators,perfect supervision mechanism and related legal system construction,increase penalties for non-compliance, increase the cost of fraud, maintainthe image of integrity of the capital market, thus eliminating the inner motivepower of the malicious earnings management of listed companies and theexternal conditions, to achieve governance malicious earnings management,make the securities market open, transparent and optimize the allocation ofresources, ensure that the role of the securities market in the market economysystem can get sufficient play. |
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