A Case Study Of Earnings Management In Yushun Under *ST Background

With the gradual development of China’s capital market,in order to effectively regulate the market order and strengthen supervision,the relevant regulatory authorities have issued and improved a series of laws and regulations.The delisting risk warning is a unique special treatment system in China.In the constantly standardized delisting mechanism,this system can help investors identify problem stocks and reduce investment risks.At the same time,it can warn the listed companies with abnormal financial and other conditions,timely strengthen the daily operation management and improve the operation status.Due to the strict auditing standards for listing,once the company is suspended from listing,it is difficult to resume listing,so listing qualification becomes a scarce resource in the capital market.In the face of the situation,companies warned of the delisting risk are more eager to keep valuable shell resources.However,it is difficult to improve the operation in the short term,the company’s management realizes the purpose of turning losses into profits through earnings management,which also meets the expectations of regulators and investors.But the company did not accurately reflect the actual financial situation,it still faces business problems and delisting risks,which is not conducive to the stability and development of the market economy.Therefore,this paper chooses *ST Yushun as the research object,on the basis of consulting and combing the theory and literature of earnings management,combined with the whole process of the delisting risk warning,it studies the behavior of earnings management,and draws the relevant enlightenment to improve the current situation of earnings management.This paper first summarizes the system background,earnings management theory and related theories,and then identifies the earnings management behavior through the operation status and the delisting risk warning process of *ST Yushun.In order to remove the risk of suspension of listing,*ST Yushun adopts related party transactions and other means for earnings management.Although it helps the company to achieve decapitation,the revenue generated is not sustainable,and the actual operation and management problems have not been improved.At the same time,the reflection in the stock market is not optimistic,the stock price drops sharply,and the future development prospect is worrying.Therefore,in order to get out of trouble in a real sense,the company’s management needs to pay attention to the development of main business and the formulation of long-term strategy,establish a sense of responsibility,strengthen the internal management of the company,and reasonably realize the operating income.Earnings management has always been the focus of academia.The innovation of this paper is to comprehensively analyze the motivation,means and influence of earnings management of *ST Yushun in combination with the handling process of the delisting risk warning.In focusing on the negative impact,the improvement measures are put forward from the perspective of the company.At the same time,this paper hopes to help such companies re-examine the impact of earnings management,then restrict the behavior of earnings management and promote the effective operation of capital market.