Earnings Management Of Major Asset Restructuring For ST Company

China's listed companies have always had excessive earnings management.The main purpose is to avoid the risk of delisting and to maintain the “shell resources” of listed companies.So far,China's academic research on the earnings management of listed companies has focused on accrued earnings management.However,due to the pressure of “protecting the shell” and the motive of “capping the hat” and the rising legal risks,ST is hard to be as usual.Use accrued earnings management to achieve turnaround in a short period of time.In 2012,the Shanghai and Shenzhen stock exchanges successively revised the “caps” rule and abolished the “caps” requirement of “extracting the net profit after the deduction of non-recurring gains and losses in the current year”,so many ST companies were able to choose to carry out asset restructuring,etc.Some real earnings management activities,through non-recurring gains and losses to achieve a turnaround and profit,thus "catch the shell".However,after the reorganization of the ST company with the purpose of earnings management,it is often difficult to fundamentally improve the operating conditions.On the contrary,the abuse of this behavior is not only not conducive to the long-term interests of the enterprise,but also to a certain extent,it harms the healthy and stable development of China's capital market.This paper first reviews the research results of asset restructuring and earnings management,and expounds the related concepts and theoretical basis of asset restructuring and earnings management.The activity of *ST Tianhua using major asset restructuring to carry out earnings management was selected as the research object to analyze and evaluate the causes,means,effects and impacts of earnings management.It is hoped that through the analysis of the earnings management activities of specific enterprises,it will provide some useful suggestions for China's institutional norms on the earnings management of listed companies.