The Research On Earnings Management Under The Background Of Large Shareholders' Equity Reduction

With the implementation of the shareholding reform in China,the barrier between circulating stocks and non-circulating stocks that have existed in the securities market for a long time has been broken,marking the era when the stock market of our country enters into full circulation.However,the subsequent major shareholder reduction has also brought a big impact on the market.The realization of the full circulation of stocks has allowed the major shareholders of listed companies to gradually profit from the increase in the company's net assets to the stock price of the secondary market.In the end,shareholding reduction became the most convenient and direct way for large shareholders to make profits.Especially in recent years,the phenomenon of large shareholder reductions of listed companies in the market has emerged in an endless stream.The scale of the reduction is large,and the timing of the reduction is clever,making the large shareholder of the listed company a key research object for share reductionThe major shareholders can participate in the company's operations,use their own equity and information advantages,and may adopt earnings management to adjust the accounting information on the statements in order to cooperate with the reduction of shares,so as to maximize their own interests.The reduction of shareholder behavior of large shareholders will not only harm the interests of small and medium shareholders,but also bring a certain degree of negative impact on the company's long-term development,which seriously affects the sound and healthy development of China's securities marketBOE A,as a leading enterprise in the development of the industry,is also an indispensable backbone for the development of China's electronics industry,but it has encountered large-scale and large-scale share reductions by major shareholders.In this context,taking BOE A as a case study object,the paper summarizes the relevant domestic and foreign research on major shareholder reduction,earnings management,major shareholder reduction and earnings management through literature,and uses information asymmetry theory and signals Transfer theory,principal-agent theory and other theories are the foundation of the article research framework and theoretical basis.Combined with specific cases,the model is used to test the earnings management behavior,analyze the BOE A's earnings management methods,and then analyze the financial consequences from the aspects of solvency,profitability,operating capacity and growth capacity.At the end of the article,suggestions on standardizing the reduction of holdings and earnings management are made from the aspects of information disclosure,financial report review,policies and systemsThrough the study of this case,it is concluded that BOE A did indeed have earnings management before the reduction,and it is a combination of positive and negative earnings management.Accumulate large amounts of bad debt reserves and inventory depreciation reserves for negative surplus management,and then carry out inventory depreciation reserve reversal,less provision for fixed asset impairment reserves,capitalization of research and development expenses,and government grants The method of earnings management regulates the company's performance.The surplus management implemented in accordance with the purpose of reducing shareholding has brought huge profits to individual large shareholders,but it has adversely affected the company and small and medium shareholders.For large shareholders who frequently reduce their holdings,earnings management is a long-term process,especially the combination of positive and negative earnings management,which needs to span several accounting periods.Conduct negative earnings management when the performance is good,to provide space for positive earnings management after the poor performance,and increase the surplus.But this is only a superficial adjustment of earnings,and it cannot change the company's true operating conditions.In order to circumvent this behavior,not only the company needs to strengthen internal control,but also requires strict control by the policy system and regulatory agencies.