Earnings Management Of Debt Restructuring Of Listed Companies

With the continuous development of the market economy,listed companies have gained more opportunities and development space,while also facing more intense competition and operating risks.In recent years,many listed companies have encountered financial crises due to poor management,and even faced bankruptcy risks.The CSRC stipulates that listed companies will be dealt with by ST for two consecutive years of losses,and will face delisting risks early warning for three consecutive years of losses.Maintaining precious "shell" resources,debt restructuring and earnings management behaviors that "beautify" financial statements will appear,especially in the "ST" category(specially for special activities performed by listed companies with abnormal financial conditions or other abnormal conditions).Processing,that is,ST,the company’s stock is called ST shares),in order to turn around losses and remove caps,most will carry out debt restructuring and earnings management to get rid of the risk of delisting.Debt restructuring,as a commonly used method to solve debt problems,is a method used by many listed companies for earnings management.It has a very positive effect on the debtor and creditor who have disputes.By implementing debt restructuring activities,those listed companies that are in financial distress can optimize the company’s unreasonable debt structure,so that the company can gain new vitality and get out of the dilemma of delisting or bankruptcy.For creditors,entering into debt restructuring agreements with debtors also You can reduce losses and protect your interests to a greater extent.Debt restructuring of listed companies not only has its obvious positive effects,but also has practical problems that cannot be ignored.In practice,the implementation of debt restructuring is not completely standardized,especially for ST-listed companies.They use the debt restructuring to decorate financial statements and manipulate profits,which disturbs the judgment of many investors and is not conducive to the healthy development of the capital market.Debt restructuring was an important way to solve the debt problem and improve the company’s capital structure,but now it has become a tool for ST-listed companiesto operate their profits to avoid delisting.The company used debt restructuring to provide earnings management.China and China first promulgated the debt restructuring guidelines in 1998.After several revisions,they have not reached the level of maturity.In addition,the delisting system in China’s capital market is based on the company’s net profit index For the most part,listed companies facing delisting due to losses have made every effort to increase profits.Debt restructuring,as a convenient and effective means of efficiency,is used by many listed companies to avoid delisting risks,which has drawn the attention of academics.Based on the above background,this article will study the behavior and consequences of listed companies using debt restructuring for earnings management,with a view to finding effective measures that are conducive to improving the theory and practice of debt restructuring,so that debt restructuring can better play its positive role.This article sorts out related research literature on debt restructuring and earnings management,studies the relationship between debt restructuring and earnings management,and explains the theoretical basis for listed companies to use debt restructuring for earnings management,and then combines Chinese listed companies with debt restructuring for earnings management.Realistic problems,select ST Northwest Bearing debt restructuring as a case for specific analysis;this article summarizes the process of debt restructuring activities of Northwest Bearing Corporation from 2012 to 2014.First,by analyzing the financial statements of Northwest Bearing Corporation before and after debt restructuring,it is found that although it is being implemented After the debt restructuring activities,the operating profit has been improved and the title of "ST" has been rid of it.However,after analyzing the changes in the financial indicators of Northwest Bearing after the debt restructuring,it has been found that its profitability and operating capacity have not been substantially obtained.Promotion.Secondly,the financial management project identified the factors of earnings management of the debt restructuring activity,and analyzed the motivation,means and space of earnings management,and also analyzed the impact of earnings management on the economicconsequences.Finally,by analyzing the case of ST Northwest Bearings using debt restructuring for earnings management,it points out the problems existing in debt restructuring and earnings management,and proposes corresponding governance countermeasures.