Analysis Of Earnings Management Of CL Limited By Share Ltd

Under the background of the rapid development of China’s capital market, the financial information disclosure of the enterprise is particularly important for the investors to make a decision. With the increasing attention of the investors and the public to the company’s financial data, the stock market began to appear frequently in the company management to reduce the quality of the accounting information quality, and the phenomenon of earnings management and excess earnings management. Excessive earnings management not only can not truly reflect the company’s operating status, but also to the majority of investors have a wrong guide, is not conducive to the healthy development of the capital market. Thus, it can be seen that the interests of protecting the interests of creditors and investors and other related interests, and to find and inhibit the earnings management of the listing Corporation has been very important. In this paper, the universal existence of the problem is studied, and the corresponding solution is put forward.Firstly, this paper makes a theoretical analysis of earnings management, including the meaning of earnings management, the existing conditions, internal motivation and external reasons, operation method and identification method. On the basis of theoretical research the by the author had participated in the internal audit of the CL share operating earnings management as an example, first of all shares of CL are described, analyzed the company in 2010 to 2014 years of financial data, and then the CL shares include the use of related party transactions, asset impairment preparation, accrued expenses, investment income earnings manipulation were analyzed by means of. At the end of the paper, the paper analyzes the motivation and causes of CL shares, including the management change, the improvement of the image of the company in the securities market, internal control is not perfect, the external audit independence is not enough, and on this basis, the corresponding governance strategies for CL shares earnings management are proposed.Through the case study of CL shares, we can see that the production condition of earnings management is not a single factor, and the operation of the operator is also diverse, and the problem of excess earnings management in the Chinese market is not only a problem, but also a lack of business, agency and government. From the internal point of view, the management system is not perfect. From the perspective of agency supervision, it is not independent, professional and integrity still need to be improved. From the government point of view, China’s current regulatory system is not perfect, there is no clear regulatory system for surplus management operations, we need to start from the root causes, and operating practices, only to solve these problems, earnings management can be controlled in a moderate range.