A Case Study On Earnings Management Of *ST Jin Lu To Flee From Special Treatment

China's capital market started late compared with the developed countries,the related laws and regulations system is not perfect,which leads the enterprise to have a lot of options in the application of accounting standards,but also makes the accounting information of the enterprise not effectively disclosed and regulated.These provide opportunities for listed companies to adjust profits by means of earnings management.Because approval system of listed companiesis very strict,then our country listing qualifications are very scarce,some listed companies will use the earnings management means to achieve the purpose of avoiding or getting rid of special treatment or keeping listing qualification.In China's current capital market,the phenomenon of abusing earnings management in listed companies is very common,which results in serious distortion of accounting information disclosed by Chinese listed companies,which is not conducive to the healthy development of China's capital market.The ST system(Special treatment)is a special system of Shanghai and Shenzhen stock exchanges in China.It refers to the special handling system of stock transactions when there are financial or other problems in listed company at the stock market,so China's stock exchange will implement special treatment on the company's stock.Through adding "ST" signs before a stock to reminding investors,the stock is very risky in the choice of the stock,then we can achieve the purpose of protecting the interests of investors.However,most of the ST companies for their own interests,to avoiding or getting rid of special treatment or keeping listing qualification,will uses all kinds of earnings management means to achieving profitability to realizing its own purpose.Based on this background and relevant theories.It analyses the *ST Jin Lu in the round,through the impairment of assets,non-recurring items and related party transactions to managing earnings,*ST Jin Lu reached the purpose of getting rid of special treatment and keeping listing qualification in 2015,and it analyzes the negative effect of the *ST Jin Lu's earnings management.At the same time,this paper also analyses the annual report for 2016 and the first three quarter financial report for 2017 of *ST Jin Lu after getting rid of special treatment.Based on the analysis of case company,this paper puts forward the following suggestions on the development of case company and the phenomenon of earnings management in China: first of all,this paper thinks that Jin Lu Group to really get out of the dilemma,it must improve from its business,improve the company's capital structure constantly to ensuring the capital chain smoothly,and optimize the allocation of resources,control the production cost strictly,and the company should innovate,upgrade product,improve the core competitiveness of products,realize the sustainable development of the company.Secondly,for the phenomenon of the abuse of earnings management in China's listed companies,relevant departments should improve the specific accounting standards of enterprises,formulate corresponding laws and regulations to restrain earnings management behavior,improve the delisting system of *ST enterprises,and strengthen and improve audit supervision so as to better promote the development of China's capital market.