Research On Earnings Management Of Listed Companies Based On Non-recurring Profits Andlosses

To meet the needs of their operation,enterprises usually choose all kinds of means for control of earnings,one of which is adjusting profit and loss.There are mainly two kinds of net profit and loss: one is the recurrent profit and loss which is closely related to the daily operation and income of enterprises and the decisive factor of their development lifeblood as well as has great influence on the enterprises’ accounting information disclosure;the other is non-recurrent profit and loss,which has no close relation with the daily operation and could not represent the actual profitability with its mostly occasionality and lower frequency.Due to some loopholes in disclosure and administration of non-recurrent profit and loss in our country,the latter becomes the primary means to stop loss for many endangered enterprises.Via reviewing relevant document literature,after studying the industrial characteristics of enterprises which have cancelled special treatment,their operating means of non-recurrent profit and loss and results of the implementation in recent years,this paper selects 31 ST enterprises with much characteristics among enterprises which have cancelled special treatment over three years.By systematic analysis,it introduces the operation means and effect of nonrecurrent profit and loss in control of earnings,and chooses the representative *ST Bioengineering to carry out analysis.Firstly,it combs the special treatment cancellation process by means of non-recurrent profit and loss in control of earnings of Nanhua Bio-medicine,then reveals the actual financial situation of enterprises after adopting that means,which finds that *ST Bioengineering which adopted that means to avoid delisting had not got improvement in their actual business and had to resumed special treatment in 2019.The truth proves that the control of earnings with non-recurrent profit and loss is of no help to the growth of enterprises,and *ST Bioengineering should focus on enhance its own strength to achieve a good performance.Based on the analysis above,it finds that the operation of non-recurrent profit and loss by ST enterprises has very little effect on the actual profits and no obvious positive effect on the growth of enterprises.Therefore,giving relevant advice to ST enterprises,supervision authorities and policy-making departments has realistic significance to calling for enterprises to develop hard strength,improving the delisting system of our country and formulating a more reasonable system for accounting information disclosure.