The Case Study On Earnings Management In YS Company

The research on earnings management originated in the United States in the eighty years of last century.With the development of the global capital market,the earnings management of listed company is emerging constantly,some companies have damaged the interests of the company and the small investors through earnings management.If we can solve the problem of earnings management,it will help the enterprise to achieve the goal of maximizing the value.In this paper,we studied the business policy of YS company since listing,on the research of the earnings management theory as the foundation,found up the six years of earnings management behavior was not subjected to any restriction,and ultimately harm the long-term interests of the company and the minority shareholders.Based on the reasons of the above three problems,this paper summarizes the case to establish a sound mechanism to control the balance mechanism and reduce the frequency of the occurrence of similar earnings management behavior.Therefore,this article has carried on the following research in accordance with the thought of "behavior-problem-reason-enlightenment".First of all,this paper analyzed the impact of the YS company's operating principles and policies,and lay the foundation for the subsequent analysis of its earnings management behavior;Secondly,starting from the definition of earnings management,the motive,means and effects of comprehensive analysis of YS company earnings management found the existing earnings management was not affected by the internal and external control,to the detriment of the interests of the company in the long run,and damaged the interests of small shareholders;Again,from the four aspects of the conflict of interests of shareholders,corporate governance is not perfect,means hidden and external oversight failure analysis of the reasons for the YS company earnings management.Finally,aiming at the problems of earnings management and the reasons,such as reducing the earnings management space and improving the corporate governance,we can get the enlightenment to solve the problem of earnings management.The results of this study showed that the big shareholders exited the company from 2009 to 2015,for up to six years of time were earnings management to match the big shareholders and senior executives to quit,and finally by the supervision mechanism of administrative regulatory measures.Because of the different forms of earnings management,the earnings management behavior has not been restricted by the corporate governance,and finally led to the serious consequences.Aiming at the problems and reasons of earnings management,this paper summarized the case inspiration: in the management level,it should reduce the space of earnings management;in the corporate governance level,continuing to promote the improvement of corporate governance,from the source to prevent the occurrence of similar behavior.In this paper,the significance laid in the study of China's stock market model of earnings management behavior,from the aspects of deep motivation and means were in-depth analysis,conflicts of interest among shareholders to provide a useful reference for the solution of the shareholders and the management.