Research On The Establishment And Consolidation Behavior Of Structured Subject

In 2014,China's newly issued CAS41 proposed the concept of a structured entity and defined it as “an entity that has been designed so that voting rights are not the dominant factor in deciding who controls the entity.”At present,there are few studies on structured subjects in this country.This article studies the establishment and consolidation of structured subjects of listed companies,and attempts to analyze the reasons.This article selects the 2014-2018 data of A-share listed companies in China's Shanghai and Shenzhen stock markets as the sample.The empirical results show that the motivations for companies to establish structured entities include the disclosure of corporate financial reports,tax avoidance and financing needs.Specifically,When a company's asset-liability ratio is higher,taxes are heavier,or financing needs are higher,it is more likely to establish a structured entity.Enterprises have opportunistic behavior when deciding whether to include structured entities in the consolidated statements,and whether the inclusion is related to the degree of earnings management;at the same time,the consolidation behavior is also related to the degree of deleveraging,and some structured entities are included in the consolidated financial statements.The asset-liability ratio declined.The study in this paper can better reveal the potential risks that structured entities may have in the process of practice by analyzing the behavior of enterprises in the establishment and consolidation of structured entities,and promote the healthy development of capital markets.