Study On Earning Management For Special Treated Company

Since 2005,our country developed a series of policies to promote the development of wind power industry.With the support of these policies,China's fan unit manufacturing enterprises develop rapidly.It is in this context,Sinovel was founded in 2006.As a national key support of fan unit manufacturing enterprise,Sinovel in this emerging field has achieved very good results from the start and it was once one of China's wind power industry leading enterprises.However,due to Sinovel own existence of equity structure,a series of problems such as lack of actual controllers,the leading enterprise declined rapidly.Due to a loss for two consecutive years from 2012 to 2013,sinovel was implemented with the delisting risk early warning * ST(Special Treatment)in May 2014 by the CSRC.Earnings management of the *ST company has been investigated by analyzing the case of Sinovel in this paper.Firstly,this paper introduces the related system background and literature review of earnings management.Secondly,it introduces the sinovel industry background,general situation of wind power industry and the relevant information of the company.Thirdly,by analyzing the profitability,asset management capabilities and the development ability of sinovel,the analysis of the various financial indicators,this paper discusses the possibility of the existence of the company earnings management.Then,according to exists abnormal situation of income statement,analyzes the surplus management for a variety of ways.Finally,on the above-mentioned aspects,relevant countermeasures and Suggestions are put forward.