An Empirical Research On Real Earnings Management About Listed Companies With Minimum Profits

There are such a special kind of company groups,in China’s securities market, with its earnings just crossed the breakeven profit.As the group luckly escape a crisis of Special Treatment,some of them always are considered into having a motive for the surplus management. But with the accounting standards and supervision system having been more and more tiny, the space of the accrued items of earnings management is deeply compressed, leaving the company groups have to managing real earnings.In order to helping investors identify manipulate earnings behavioral characteristics of the group,reducing mistakes in investment decisions. In this paper,we will study on real earnings management about these companies(meager profit of listed companies).Baed on using literature research method, and inductive analysis method to summarize and generalize the relevant literature and the theories of real surplus management.Using the model measurement of Roychowdhury to select 317 meager profits of listed companis in 19 industry for samples, and selecting financial data from 2008 and2012 for basement to research by the view of real sales operation. Through the descriptive statistical analysis,it considers that listed companies of small profits can be divided into Small profit of listed company with consecutive profit and small profit of listed companies with profitable(as no zero profit phenomenon in sample,the paper do not take accout this phenomenon). Then, through analying the exists of real surplus management of this two classes,it turn out that small profit of listed companies with profitable does not tend to use the way of real sales manipulation to manage surplus;but small profit of listed company with consecutive profit will.Next, analyzing the industry features(popularity, price elasticity of demand, obvious seasonal characteristics)and the annual features(more and more profit consecutive profitable listed companies tend to use low-level the real sale of surplus to manage profit) of small profit of listed company with consecutive profit.And finally, on the basis of analyzing the motive of meager profit of listed companies, from macroscopics and microscopics,figuring out suggestions to govern the real earnings management of small profit company.The innovation of the paper:(1) Against the blank of the reseach on real earnings management about Listed Companies with Minimum profits,the paper study on this area can help investors identify manipulate earnings behavioral characteristics of the group.(2)Based on the concept of pre-operating conditions paly a critical role in current business activities,the research divide the current status of Listed Companies with Minimum profits into two class.(3) Taking into account the different real earnings management means have different influence on profits, in order to control the generation of offsetting effects,specifically the paper from the perspective of real sales to study real earnings management on listed companies with minimum profits.