On The Problems And Governance Of Real Earnings Management:A Case Study Of Shanghai Keji Corporation

With the rapid development of the social economy and the increasing living standards of people,China’s capital market has developed rapidly.In order to regulate and supervise the capital market,the relevant state departments have enacted legislation.At present,China’s stock issuance system implements the approval system,which makes it difficult for listed companies to obtain listing qualifications.Most enterprises are still in a state of lack of “shell” resources,so they will do their utmost to preserve their precious “shell” resources.Therefore,in order to maximize the benefits,most enterprises have adopted the means of earnings management to manipulate profits.An in-depth study of this aspect is of great importance to both managers and investors.This paper takes case analysis as a research method and selects Shanghai Keji corporation to conduct a case study of real earnings management behavior.The first part is the introduction,which is mainly based on the background and significance of the topic,literature review,research framework and research methods.The second part is the institutional background and related theoretical explanations.It focuses on the background of ST and *ST system and the related theory of real earnings management.The third part is an overview of the case company’s relevant situation.First,it gives a brief description of China’s ferrous metal smelting and processing industry and its upstream and downstream industry profiles and business environment,and then briefly introduces the basic situation of Shanghai Keji and its several progress of picking up the star and taking off hats.The fourth part is a case study of the real surplus management of Shanghai Keji corporation.Based on the motives of the case company’s earnings management,it focuses on how to use the non-current asset disposal,government subsidies and related party transactions to develop real earnings management and implement the actual operating and financial effects of the company after “caps”.Then according to the summary of the management methodsand characteristics of real earnings,the paper analyzes the problems reflected by its behavior,then concludes that its existence of real surplus management means has the characteristics of composite and non-sustainability,as well as the imperfect ownership structure and supervision mechanism,the assets valuation is unscientific,the use of delisting rules loopholes,the use of accounting standards are not perfect,and the government support standards are not clear.The fifth part is the countermeasures and suggestions for the management of Shanghai Keji corporation real surplus management.In response to the problems reflected by the real earnings management behavior of case corporation,it proposes to strengthen the internal control of the enterprise and improve the ownership structure,strengthen the scientific nature of asset evaluation,and improve the delisting mechanism,improving information disclosure and supervision,regulating government support behaviors.In order to provides some inspiration for excessive manipulation of corporate earnings.The sixth part is the conclusion,including research conclusions,research innovations,research shortcomings and prospects.This paper mainly uses literature research methods and case study methods.The main innovation of this paper is that the perspective is relatively new,focusing on the real earnings management behavior of case companies,analyzing the motives of earnings management and the existence forms and adjustment methods of real earnings management,which complements most theoretical research and empirical research.To a large extent and expand the existing research results related to earnings management.