Research On The Back-door Listings,Performance Commitment And Earnings Management

With the continuous development of domestic capital market and the easing of listing policies,Back-door Listings has become a popular choice for companies to go public in recent years.Compared with IPO,Back-door Listings’costs are lower,time is shorter,and regulatory and review requirements are also lower.Earnings management,as a normal profit adjustment measure for enterprises,has been abused by more and more enterprises in recent years and has become a means of manipulating profits for private gains.In order to obtain a high premium,increase the success rate of listing,and meet market expectations,earnings management has gradually become a common phenomenon for Back-door Listing companies.In addition,the number and scale of mergers and acquisitions in the capital market have increased in recent years.The use of performance commitments is becoming more and more common,but the role of risk aversion has gradually weakened,and the negative effects have gradually emerged.In order to achieve high performance commitments,companies have a strong incentive to carry out earnings management.The chaos in capital markets such as value and corporate performance has changed dramatically.In order to obtain high premiums and high market expectations.Back-door Listing companies often promise higher performance commitments.By sorting out the literature related to Back-door Listing,performance commitment and earnings management,and using earnings management as an entry point,the relationship between corporate backdoor listing and earnings management and the relationship between performance commitment and earnings management are studied,so as to be relevant Research provides new research ideas.Based on information asymmetry theory,target setting theory,signal transmission theory and contract theory,this paper firstly analyzes the relationship between corporate Back-door Listings,earnings management and performance commitment on the basis of literature research.Then it studies Back-door Listings’ motivations of earnings management,the degree of earnings management and the performance of earnings management during the performance commitment period of the enterprise,and the conclusions are summarized,aiming to put forward the corresponding earnings management regulatory measures and research ideas for the subsequent standardization of the company’s backdoor listing and performance commitment.Through literature research methods,case research methods and data research methods,we conducted an in-depth case analysis of the case of the Taiwan Strait Nuclear Power.The case analysis is organized in detail from the introduction of the two companies,the process of Back-door Listing,the performance of commitment and its realization,and the company’s performance changes before and after the performance commitment is completed.It can be inferred from the fact that after the completion of the performance commitment of the Taihai Manoir Nuclear Equipment Co.,Ltd,the performance faces changes and the performance commitment terms change,the performance leaps and bounds in the two years after the performance commitment,and the final precision meets the standards.Then,this paper analyzes the motives of the earnings management of the Taihai Manoir Nuclear Equipment Co.,Ltd from the two aspects of Back-door Listings and performance commitment,and examines the earnings management degree through the revised Jones model,and analyzes the company’s earnings management operations based on the company’s financial data and operating conditions.Finally,through the analysis of the case,the article concludes that the performance commitment during the backdoor listing of Taihai Manoir Nuclear Equipment Co..Ltd makes the company have a strong motivation for earnings management and the degree of earnings management is greater.The company has damaged the rights of small and medium shareholders through earnings management and disrupted the order of the capital market.It should strengthen the management of the backdoor listing and performance commitment process to avoid excessive earnings management during the performance commitment period.Finally,suggestions are made from the aspects of perfecting performance commitment plan,perfecting backdoor listing plan and perfecting earnings management and supervision.