Research On Earnings Management Methods Of Delisting Risk Warning Listed Companies Under The Background Of New Delisting System

The new delisting regime in 2012,on the one hand,comprehensively expanded the criteria for delisting risk warnings and added financial indicators such as net assets,operating income,and audit opinions based on the original net profit as a single indicator.However,on the other hand,the conditions of warning revocation for those companies that received delisting risk warning have been relaxed,and the impact of extraordinary items on net profit has not been excluded.Aiming at the reform of the delisting system in 2012,in this work,whether the companies that received delisting risk warnings will perform accrual-based earnings management to improve the situation was studied through empirical testing methods.Moreover,because the new rules of the delisting system consider no extraordinary item,whether those companies that received delisting risk warning will use an extraordinary item to turn losses into profits was further examined.Considering that there are many detailed items for the extraordinary item,the impacts of gains(losses)on non-current assets and government subsidies on the improvement of the status of companies that received delisting risk warnings were focused.In present work,the companies receiving the delisting risk warning in 2013-2018 were adoped as the samples,and both theoretical analysis and empirical testing were employed as the methods.Based on the relevant concepts and theoretical analysis,the hypothesis was put forward,and then the descriptive statistics,T-test,correlation analysis,Logistic regression,and other methods were used to systematically investigate the earnings management of the companies receiving the delisting risk warning under the new delisting regime.The results indicated that under the new delisting regime in 2012,the improvement of companies receiving the delisting risk warning was not only positively related to traditional accrual-based earnings management but significantly positively related to extraordinary items.In other words,after the conditions of warning revocation for the companies that received delisting risk warnings were relaxed,delisting risk warning companies could use extraordinary items to manipulate surpluses and quickly turn losses into profits.In addition,through further analysis of the two detailed accounts of extraordinary items,it was found that the improvement of the companies that received delisting risk warning was significantly positively correlated with the gains(losses)on non-current assets,but there was no significant positive correlation with government subsidies,revealing that companies receiving the delisting risk warning mainly control the extraordinary items through the disposal of non-current assets,and then manipulates the surplus to realize the turnaround from losses to profits.The main contributions of this work were as follows: in the context of the new delisting regime in 2012,the latest data was used to study the earnings management of delisting risk warning companies.Secondly,in addition to traditional accrued earnings management,its relationship with delisting risk warning companies was studied innovatively and empirically from the perspective of extraordinary items.