Research On The Earnings Management Of Business Combination Under The Same Control

The accounting treatment of business combination has always been a hot topic in the accounting profession in China.In practice,management and controlling shareholders,in the interests of maximizing their own interests,will choose accounting methods in line with their own interests within the scope permitted by laws and regulations to achieve the purpose of avoiding delisting or attracting other investors.It does not meet the interests of other stakeholders besides management and controlling shareholders.Excessive earnings management can even cause serious distortion of accounting information.In the enterprise merger guidelines issued by China in 2006,the types of business combinations are divided into two categories,namely,business combinations under the same control and business combinations not under the same control.Due to the limitations of its accounting methods,business combination under the same control has become one of the means of ST company's earnings management.Excessive earnings management can reduce the quality of accounting information and even cause distortion of accounting information.ST companies may have incentives for earnings management due to delisting risks,so many ST companies' management will focus on earnings management,which can enable companies to inflat profits and even achieve the goal of removing caps in the next year.It can be seen from this that the domestic accounting method of business combination under the same control has exposed some problems,and China's capital market is not mature enough.Firstly,the thesis reviews and summarizes the relevant literature research on business combination and earnings management behavior under the same control at home and abroad,and then summarizes the basic theory of business combination and earnings management under the same control,and then starts from the case of ST five rare.This paper analyzes the motives,means and effects of ST five rare use of business combination under the same control for earnings management,which leads to the thinking of the accounting method of enterprise merger under the same control.Finally,the paper puts forward the accounting method of enterprise merger under the same control in China.Improvements and other recommendations were summarized and looked forward to.In this paper,the research methods such as literature research method,comparative research method and case analysis method are used to study the problems in the accounting treatment of Chinese listed companies under the same control in the form of case analysis.Combining the excessive earnings management to manipulate profits to give some suggestions for improvement of accountingmethods,and introducing new accounting methods for business combinations under the same control.