Study On Earnings Management In ~*ST Xiali Hat-picking

In April 1998,the Shanghai and Shenzhen Stock Exchanges first proposed the ST system,and the financial situation and other abnormal enterprises will be dealt with specially.Due to the valuableness of listing qualifications,some ST companies use earnings management methods to regulate corporate profits,thereby achieving the purpose of removing caps and avoiding being delisted.Many studies have shown that when the conditions for the company’s capping are not clearly defined in the earnings quality,the company will identify a large number of non-recurring gains and losses in the earnings management,and when the company’s capping conditions have clear provisions on the earnings quality,the company is making a surplus.The non-recurring gains and losses recognized at the time of management will be relatively small;in 2012,the "caps off’ condition of the enterprise was abolished,"deducting non-recurring gains and losses is positive",this change of conditions brings convenience to the company’s earnings management,and the capital market appears.A large number of "caps" companies.Changes in policies will have a certain impact on the behavior of enterprises,and changes in the conditions of capping the capital market will also lead to changes in the management tools of listed companies’ earnings.In this context,this paper selects*ST Xiali as the research case,and has two experience of taking off the hat before and after the policy change in 2012.The earnings management method also changes due to different policies.To analyze the impact of policy changes on changes in corporate earnings management tools and the impact of earnings management practices on companies.The study found that the change of the capping conditions caused many companies to rely on the control of non-recurring gains and losses to change the company’s surplus,and most of the companies that succeeded in the capping were still not optimistic,and there is still the possibility of wearing a second cap.ST companies pay enough attention.