On Earnings Management Of Chuying Agro-Pastoral Co.,Ltd

In recent years,listed companies and their affiliates participate in the establishment of M&A funds,a new way of restructuring,which is active in the capital market,and the scale of funds increases exponentially.In order to better promote the merger and reorganization of enterprises,the State Council and the Securities Regulatory Commission have also issued a series of policies,but at the same time,a series of issues such as related party transactions and earnings management have also increased the supervision of the Securities Regulatory Commission.This paper studies the earnings management behavior of listed companies from the perspective of listed companies’ participation in the establishment of M&A funds,enriches the theoretical research on the economic consequences of M&A funds in China,and supplements the research literature on the problems of earnings management in the establishment of M&A funds by listed companies.A case study of Chuying Agro-Pastoral Co.,Ltd,this paper uses the method of case analysis to discuss the integration of listed companies’ participation in the establishment of M&A funds and earnings management,studies the motivation of listed companies’ participation in the establishment of M&A funds for earnings management,studies its capital operation and related transaction behavior,and combs its unique breeding mode of "Eagle Model 3.0".Analyses the relevant information in company annual report,announcement and SFC regulatory inquiry letter,and identify the way of earnings management.For the consequences of earnings management,short-term performance response,the event study method is used to analyze the market reaction of Chu when establishing M&A fund and publishing annual report in 2017;the long-term performance is combined with the fluctuation trend of company stock price,bond and the change of company’s main body rating,and the search index and media index of Baidu index are selected to observe Eagle farming and animal husbandry participation in many aspects and multiple indicators.Relevant consequences of earnings management in the process of M&A funds put forward the future M&A fund management policy or guidance direction for listed companies and regulators to promote the healthy development of M&A funds market.This paper finds that there are two main ways of earnings management in the case of Chu: by participating in the establishment of M&A funds and recognizing them as available-forsale,controlling the time and amount of other comprehensive earnings reclassified into current profits and losses for earnings management;by means of concealed shareholder relationship between cooperatives and companies,the company transfers fixed assets to form non-recurrent gains and losses.Based on the rapid development of listed companies’ participation in the establishment of M&A funds,the following suggestions are put forward: listed companies should make more rational use of M&A funds as a tool to strengthen internal and external governance,give full play to their advantages to help the strategic development of the company;in the aspect of market supervision,relevant departments should improve the information disclosure and supervision of M&A funds,and improve the financial statements of listed companies.Disclosure of non-recurrent profit and loss information should strengthen the social supervision function of CPAs to promote the healthy development of capital market and the construction of multi-level capital market.The innovation of this paper is to synthesize the listed companies’ participation in the establishment of M&A funds with the company’s future performance and earnings management,to track the whole chain in depth,and to conduct case studies combined with its unique business model.In the analysis of the consequences of earnings management,it combines event study,bond rating,media index and other multi-angle and multi-index comprehensive evaluation.