Research On Earnings Management Of Non-recurring Profit And Loss

In China's capital market,the earnings management behavior of listed companies has become common.Since the delisting system started in 1998,capital market produced a series of cases about*ST companies' earnings management,then in 2012,China's delisting system cancelled the limit of profit after deducting non-recurring profit and loss when*ST companies revoked delisting risk warning,the phenomenon of*ST companies using non-recurring profit and loss to manage earnings was getting worse.Nowadays,institutional and regulatory defect has led lots of*ST companies to conduct improper or excessive earnings management for seeking unjust interest,and at the cost of the interest of investors and creditors,*ST companies' earnings management behavior about non-recurring profit and loss be analyzed,not only can help regulators improve regulatory measures,also help investors and creditors identify enterprises'improper earnings management behavior for safeguarding their own interest.This dissertation takes*ST Zhongfu as an example and has solid theoretical basis,firstly introduces the basic situation of company,industry,and the system background,then analyzes the company's main financial data and makes a preliminary identification of the company's earnings management behavior on the grounds of analysis result,after this,the dissertation uses total accrued profit model to make accurate identification for the earnings management behavior of*ST Zhongfu,and then analyzes the means,internal and external causes,economic consequences of the company's earnings management behavior about non-recurring profit and loss,Finally,this dissertation puts forward the suggestions to curb*ST companies' earnings management behavior of non-recurring profit and loss.As earnings management is a behavior of conforming to accounting standards,*ST companies' earnings management behavior,which is based on non-recurring profit and loss,may can't be eliminated,but this behavior can be controlled by effective measures,such as improving accounting standards and market system,strengthening supervision,and boosting the effectiveness of external audit etc.