ST* Three-dimensional "Shell-keeping" Earnings Management Research

The product of enterprise management and capital development is becoming a hot spot in the field of financial accounting.In the development of more than 30 years,earnings management has become an indispensable double-edged sword in listed companies and capital markets.It can not only polish the statements of listed companies,but also convey misleading signals to investors.Especially in today's world,China's capital market is developing rapidly,earnings management is still in an emerging stage,and scholars' research on earnings management is becoming more and more detailed.However,China's relevant laws and regulations still have some imperfections,plus China's earnings management.The lack of experience in the operation has caused many problems in the practical management of earnings management,and has also caused confusion in the capital market.Earnings management is a means of beautifying profits for listed companies,and its forms are diverse.In theory,earnings management is divided into real earnings management and accrued earnings management.With the continuous revision and strengthening of regulatory systems and measures,listed companies are beginning to use more covert means instead of recurring gains and losses as enterprises are not frequent.A means of occurrence,concealed and quick to be effective,and the net profit is turned into a profit when the operating profit of the listed company does not improve.Therefore,the amount of non-recurring gains and losses is huge,which may be in the financial statements.Implicitly a huge surplus trap,the more it needs to focus on the operating profit of listed companies,because often its operating profit is a huge loss,which requires huge non-recurring gains and losses to make up.Due to the above background and the special nature of non-recurring gains and losses,*ST company is extremely popular with this method.* ST company,which has been losing money for three consecutive years,is on the verge of delisting.Its willingness to turn losses into profits is very strong,and it needs to be effective in a short period of time.It often chooses non-recurring gains and losses in the way of turning losses.This article selects *ST three-dimensional group(now renamed Shanxi Road and Bridge)which has typical non-recurring profit and loss operation in *ST company,and wears cap and hat for 2012-2017 for target company *ST 3D Group Analyze the process and analyze the non-recurring profit and loss earnings management.From the motives,means and existing problems of non-recurring profit and loss earnings management,find out that *ST listed companies use non-recurring gains and losses to make surpluses.Manage issues and make recommendations for the problem.In the process of analyzing *ST 3D,the two consecutive years of losses in 2012 and 2013 made *ST 3D Group become *ST in 2014,and in 2014 *ST 3D Group used non-recurring gains and losses for earnings management.The profit of the year reached 60 million,and the cap was successfully removed.The revenue of the 15 year *ST 3D Group exceeded 7 billion,but the profit was once again negative.It can be seen that although the earnings management measures adopted in 14 years have succeeded in avoiding delisting,the profits in just one year have fallen to negative values.It can be seen that the non-recurring profit and loss earnings management has not kept the profitability trend after the company turned losses into profit.The negative profit for two consecutive years in 2015 and 2016 made the 3D Group “wearing a hat in 2017”.So the *ST 3D Group has embarked on the old path of using non-recurring gains and losses for earnings management.And in October 2018,*ST 3D Group is in the hope of improving its main business,*ST 3D Group's controlling shareholder Shanxi 3D Winbond Group Co.,Ltd.(hereinafter referred to as "3D Winbond")will hold the 3D of Shanxi 130,412,280 A shares(accounting for 27.79% of the total share capital)were transferred free of charge to Shanxi Luqiao Construction Group Co.,Ltd.(hereinafter referred to as “Luqiao Group”).The two parties signed the “Three-dimensional Group Co.,Ltd.” on August 23,2018.The Free Transfer Agreement.Through the above analysis,it is concluded that its non-recurring profit and loss earnings management activities in 2014 and 2017 have avoided the risk of delisting,but the profit is not sustainable,its main business situation has not changed,its operational capacity and Profitability is still low.In the end,I can only embark on the road of “selling assets” or “marriage with others” to start a new life.This case also reflects a large number of *ST companies' losses and the institutional loopholes in the securities market.On this basis,we propose targeted recommendations for *ST companies and the securities market.