Research On GCL Integrated Government Subsidized Earnings Management

Our government plays a vital role in domestic socio-economic activities.Generally speaking,the government will adjust and control the economic development of various places through "invisible hands".The government allocates monetary and non-monetary subsidies to enterprises and this is most direct way to support your business.The development of local enterprises will affect the development of the local economy and the fiscal revenue of the local government,and the development of the local economy will affect the performance evaluation of the regional government to a certain extent.Therefore,the local government attaches great importance to local enterprises,especially listed companies.In order to ensure the good development of local businesses in various industries,the government will issue a series of supporting policies to strengthen the support for local enterprises and promote the good development of local enterprises.In recent years,the state's subsidies for listed companies have gradually increased,and the photovoltaic industry as a member of the new energy industry has gradually increased government subsidies.However,the disadvantages caused by the continuous increase in government subsidies have gradually become apparent.Although government subsidies have promoted the development of listed companies,some listed companies often use government subsidies to make surpluses in order to protect their shells or other benefits when their operating performance is not good.Manage,manipulate its operating profit,and whitewash statements.Earnings management by listed companies will distort accounting information,hinder their healthy development,and have an impact on capital markets and investors.The literature review method and case analysis method are mainly used to analyze and analyze the behavior of GCL Integration Technology Co.,Ltd.(hereinafter referred to as GCL Integration)using government subsidies for earnings management.First,analyze the general trend,industry conditions and regional conditions of government subsidies in China,and then introduce the basic situation of GCL integration and the specific situation of obtaining subsidies;next,determine whether GCL Integration has earnings management behaviors,and then analyze the motivation,specific behavior,and consequences of GCL Integration using government subsidies for earnings management;finally,suggestions are made from both internal and external aspects of the company,the purpose of which is to discourage listed companies from using government subsidies for earnings management.This is helpful for many related listed companies to have a deeper understanding of the consequences of the implementation of earnings management behaviors,so that companies no longer rely on earnings management but instead improve their real performance based on their actual situation.