Study On Removing The Caps Of *ST Companies By Earnings Management

The special system of securities market in China Treatment),which can be understood as the risk warning to the listed company in case of abnormal operation and financial situation,will degrade the company complying with these abnormal rules by St processing,that is,adding st in front of the stock name of the stock company,and at the same time limiting the daily fluctuation range of the company's stock from the original 10% to 5%,and distinguishing such company from the positive one by St As for the difference between frequently listed companies,the operator can decide whether to invest in the company by relying on the st in front of the stock name.At the same time,the company should objectively disclose its most authentic operating condition and profit situation,and warn the investors that there are risks in investment,and there must be unpredictable risks in their behaviors.In China's securities capital market.it has long been common for ST companies to use earnings management and other special means and methods to remove the cap and "protect the shell" of listed companies for the purposes of financing motivation,market protection motivation,reward motivation and political motivation.However,in fact,due to various reasons,most companies have not achieved profits through reasonable and legal methods such as increasing operating income and reducing operating costs.Instead,they rely on excessive earnings management to manipulate profits,thus achieving the goal of removing the cap.There is no doubt that this behavior of the company will lead to serious distortion of accounting information obtained in the external market,damage the interests of market investors,make investors lose investment confidence,lead to a cold market,and ultimately endanger the country's economic development.This is actually a big evil result caused by the objective defects in the system level with ST system as the core.Therefore,this paper has certain theoretical significance and practical value for the study of earnings management of ST Company.This article mainly adopts the method of case study,on the basis of reviewing the relevant research results at home and abroad,through the necessary elaboration of the relevant theories of earnings management and China's ST system,etc.it has established the relevant theoretical basis for the study of this article.Then,taking *ST Xiali's successful hat removal as an example,the background,motivation.means and subsequent operation of *ST Xiali's hat removal are analyzed in detail,and the result that this practice has not really improved the operation and achieved profits is revealed.Finally,the article puts forward corresponding opinions and suggestions.In terms of structural arrangement,this paper has five chapters: Chapter One,introduction;Chapter Two,overview of ST system and earnings management;Chapter Three,case introduction;Chapter Four,case analysis;Chapter Five,research conclusion and case enlightenment.This paper takes *ST Xiali company as an example,and considers that in order to standardize the delisting disorder of ST company,it is necessary to further improve the relevant laws,regulations and guidelines,reasonably plan and implement the delisting system of ST company,and urge the listed company to establish a complete internal governance structure and other relevant system design and supervision implementation.Not only that,in addition to starting from the system,it is more important to guide ST company to start from a strategic long-term perspective,implement innovation driven development,strive to improve the endogenous power of the enterprise,constantly improve its business situation,and finally realize the transformation,development and upgrading of the company's business.Such a "two pronged approach" will promote the sustainable,stable and healthy development of China's capital market.