A Study Of Earnings Management Of Beingmate Co.,Ltd.under *ST Background

With the rapid development of China's securities market,the regulations of the securities market are gradually improving,but there are still some institutional loopholes that can be exploited by listed companies for earnings management.The financial reporst are the main way for external stakeholders to know the operations of listed company,and the surplus is most concerned by investors.The improper use of earnings management weakens the authenticity of the statements and reduces the quality of earnings,which may have adverse effects on enterprises and markets.The unique ST system in China's is one of the important motives for listed companies to manage their earnings.Because of the scarcity of the qualifications of listed companies in China,the motivation of listed companies to keep their listing qualification is strong.With the reform of the system,earnings management approaches are more diversified and complex.In this situation,controlling the earnings management by the regulators as well as the report users to identify the earnings management is getting more difficult,and the more costs the enterprises will pay in order to implement the earnings management with making a great impact on a long term of running the company.Based on the summary of previous researches,this paper explains the relevant background of the*ST system,using Beingmate company as the case enterprise,describing the performance of Beingmate in the past 4 years and the process of the company's getting*ST and getting rid of*ST.It mainly analyzes the motives and causes of earnings management;and analyzes how it uses the methods of non-recurring profit and loss,asset restructuring,asset impairment,and period-cutting expenses to reach the result of getting rid of*ST and affecting stock prices.This paper puts forward three suggestions for*ST Beingmate getting out of the business dilemma;it proposes three countermeasures for the relevant regulatory agencies to standardize the earnings management of*ST enterprises.Finally,the conclusions of this paper are presented,and the case enlightenment of investors' identification of*ST enterprises' earnings management methods is proposed.*ST enterprises use earnings management to achieve short-term performance improvement,but the long-term business profitability can not be improved,which has a negative impact on the resource allocation efficiency of the securities market,resulting in the loss of investor interests.This paper enriches the earnings management research based on cases analysis,and plays a role in prompting the securities institutions and protecting investors.