Study On Earnings Management Behavior And Consequences Of Mining Western

Earnings management has always been a key research topic in the accounting field.Excessive earnings management is not only harmful to the business development of the company,but also misleads investors who lack knowledge of the company and cannot accurately determine the financial and operating conditions of listed companies,so that they make wrong judgments and suffer economic losses.In order to effectively analyze the financial information of listed companies,identify earnings management behaviors and motivations in the company,and estimate the possible consequences,this paper selects Western Mining as the object of case study.First of all,the earnings management behavior of Western Mining is identified by analyzing the profitability,main business,investment and equity change situation during2017-2019.Based on the analysis of earnings management in western mining,it is found that the identification framework of earnings management behavior can be built according to profitability indicators and major information,and use the Jones model to verify the earnings management of listed companies.Through the analysis of earnings management behavior of Western Mining,it is found that due to the existence of position motives,financing motives,exaggerating losses and avoiding ST motives,Western Mining used both accrual earnings management and real earnings management methods from 2018 to 2019,such as the use of asset impairment,Investment income,changes in accounting estimates,affiliate transaction.There was a downward revision to 2018 earnings and an upward revision to2019.Because western mining uses both accrual earnings management and real earnings management methods,scholars have different conclusions on the relationship between them.In order to analyze whether the above two earnings management methods interfere with the earnings management behavior of Western Mining,the correlation analysis is made,and it is found that there is a negative correlation between the two,but not significant.Secondly,after analyzing the financial status,stock prices and investors of Western Mining,it is found that earnings management behavior in 2018-2019 can help the enterprise to achieve the expected goal in the short term,but has a negative impact on the long-term interests.Through the event study method,it is found that in 2019,the stock price of Western Mining is affected by the downward fluctuation of Western Mining's loss announcement and annual report in the short term,while the stock price of Western Mining is mainly affected by the fluctuation of industry sectors in the long term.Through this event,it is found that investors do not pay attention to the composition of corporate profits,can not identify the existence of earnings management behavior,and there is lag in information transmission.Finally,based on the above research findings,from the perspective of corporate governance,it is proposed to strengthen the investment control ability of listed companies and strengthen the supervision of enterprise internal audit institutions.Regulatory departments proposed to revise and improve accounting standards,improve securities laws and regulations,and increase the intensity of punishment.Strengthen the information disclosure of listed companies,expand the scope of information disclosure and refine the specific requirements for disclosure.From the perspective of investors,it is proposed to pay attention to the development of the company's core business and strengthen the ability to identify earnings management behavior.