A Case Study Of Earnings Management Actions To Get Rid Of Warning Of Delisting Of *ST Chunhui

The ST Mechanism is a particular product of the economic system of socialism with Chinese characteristics,and the significant institution for keeping the long-term stability of the security market of our country.However,it can be seen from the actual practical result that it is the ST Mechanism that allowed non-well-business listed companies a chance to gasp.There emerges a large quantity of cases that Earnings Management Measures been utilized rather than business statement been actually better arranged to call off the warning of been delisted,which is the so-called 'Remove the beret'.This undesirable phenomenon will mislead the investment decision of investors in the security market,be harmful to the rational allocation of capital and currency,and even,to some extent,exert an opponent influence on the well-development of our economic system of socialism with Chinese characteristics.Unfortunately,by reading relevant materials it is not hard for us to discover that the phenomenon that ST company using earnings management to 'remove the beret' has permeated in every industry and to all the area.This article is just based on the big environment and has considered different cases in different area from different industry,pick the*ST Chunhui as the target case and dug out its new characteristic,which possesses a certain of theoretic meaning and practical value to the research of earning management problem.This article,following a relatively standard research thinking,makes a necessary statement of relevant theory of earnings management and the ST Mechanism of our country on a basement of review of current researching statement at home and abroad,which helps to build a theoretic foundation of itself.Next,the paper made a concrete recognition and analysis about the main motives and measures of this company,base on a brief introduction of the*ST Chunhui case.Then,the article analyzed the possible influence of the actions been taken by*ST Chunhui to get rid of the warning of delisting.Finally,the paper poses the consequence and expectation in the light of theoretic expounding and practical analysis.The research shows that on the one hand,we need to emphasis more on the force to carry out Accounting principles,supervise more on the Information Revealing Mechanism of corporations,and help the inner and outside auditors to better play their role.On the other hand,"SYSTEM" is not all-powerful.What is of more significant is that to continually improve management statement from standardizing the main business,or to positively find a project to optimize the assets and transitional development and finally make it to wholly upgrade.Only when we take actions from both the systematically standardizing level and the radically business improvement level,can we substantially cool down or cut off the continually phenomenon that ST companies frequently utilize Earnings Management Methods or other forms of it to get rid of the warning of delisting in our security market.