Research On Earnings Management Of A Manufacturing Company

Earnings management as an important "reporting beauty tool" has been widely used by domestic and foreign companies,so it also makes earnings management an important field of accounting research.Combining the changes in the external environment of the industry and the internal operating conditions of the company,it is possible to better identify and judge the means of the company's earnings management,speculate on the company's motives for earnings management,and then analyze the reasons for the company's earnings management,so as to better improve capital Provide basis for market operation and accounting standard setting.Therefore,in theory and practice,research on earnings management is very necessary.From 2014 to 2019,the annual net profit of Manufacturing company A maintained a positive upward trend.The highest net profit was nearly 300 million yuan.However,the data in 2015 experienced abnormal fluctuations,resulting in a huge loss of nearly 200 million yuan.Considering that it faces titanium processing The sluggish industry conditions and the dual pressures of the China Securities Regulatory Commission's ST warning regulations believe that it has strong earnings management motives.Therefore,this article takes A manufacturing company as the research object to analyze its earnings management behavior.Firstly review the current research status at home and abroad,and briefly explain related concepts and related theories to lay the research foundation;secondly,based on Manufacturing company A's financial and non-financial data,combined with the overall operating status of the industry,initially identify the company's earnings management methods and motivations,and use the modified Jones model to verify the existence and extent of the company's earnings management,and analyzes its long-term and short-term impact on the company;finally,it provides targeted recommendations for Manufacturing company A,regulatory authorities,and external information users.The research results of this paper show that under the modified Jones model,Manufacturing company A does have earnings management behaviors.It mainly manipulated the 2016 financial report through government subsidies,related party transactions,asset impairment losses and other means;Earnings management cannot be eliminated under the background of market and accounting standards.The listed companies,regulators,and external information users should work together to reduce earnings management behavior as much as possible and improve the authenticity of financial reports.