Research On Earnings Management Behavior Of Manufacturing *ST Listed Companies

Corporate earnings can be divided into two categories,one is the recurring profit and loss closely related to the daily operation of the enterprise,the other is the incidental non-recurring profit and loss irrelevant to the daily operation of the enterprise.Among them,the non-recurring profit and loss can not represent the actual profit level of the enterprise because of its unsustainability.At present,the definition and disclosure system of non-recurring gains and losses in China is still not perfect.At the same time,the rules of Listed Companies in Shenzhen and Shanghai have also relaxed the conditions for *ST enterprises to withdraw the risk warning of delisting,and no longer require net profit after deduction of recurring gains and losses to be a positive indicator.These factors give birth to the phenomenon that many*ST enterprises make use of nonrecurring gains and losses to manage their earnings.There are a large number of "immortal bird" enterprises in the capital market.Although their main business has been losing money for many years,they avoid listing by selling assets,selling stocks and government subsidies.This behavior pollutes the investment environment of the stock market,is not conducive to the rational allocation of market resources,and reduces the quality of listed companies.This paper will first summarize the relevant theoretical basis and research results of non-recurring gains and losses and earnings management,and then analyze the motivation and means of earnings management of Listed Companies in China based on ST system and non-recurring gains and losses system.Then,this paper selects 106 manufacturing * ST listed companies in manufacturing industry from 2013 to 2017 as samples to analyze the non-recurring capping of manufacturing *ST companies in that year.The impact of profit and loss on net profit and what non-recurring profit and loss items manufacturing *ST companies prefer to use to implement earnings management are analyzed.According to the research,it is concluded that the contribution rate of non-recurring profit and loss in the year when the withdrawal warning of delisting risk was withdrawn has a great impact on net profit,and prefers to use debt restructuring,asset sales,government subsidies and other means to adjust the amount of non-recurring profit and loss and then affect net profit.Then,the case of *ST Shenyang Machinery’s huge non-recurring profit and loss earnings management in 2017 is introduced.The results show that the main business is difficult to operate and the non-recurrent gains and losses are easy to operate,which is the reason why *ST Shenyang Machinery takes the non-recurrent gains and losses as the main means of earnings management by taking advantage of delisting loopholes.The main means used by *ST Shenyang Machinery are disposal of non-current assets,debt exemption,reduction of impairment losses of assets,etc.Finally,this paper hopes to improve the delisting system of the securities market and enhance the risk awareness of investors by establishing a regulatory system based on non-recurrent gains and losses,so as to better purify the stock market environment,improve the quality of listed companies and safeguard the legitimate rights and interests of investors.