Research On Earnings Management Of C.Q. Pharmaceutical Holding Based On Asset Reorganization

In China,some loss making listed companies often use earnings management to manipulate profits to meet the requirements of relevant policies in the capital market.Earnings management has advantages and disadvantages.Appropriate earnings management will promote the better development of enterprises,but excessive earnings management will be the opposite.The management of some enterprises use the loopholes in the existing laws to adjust the financial statements to maximize their own interests.Doing so will not only endanger the future development of enterprises,but also have a negative impact on China’s economic market.There are many ways to manipulate profits through earnings management,and asset reorganization is one of them.This paper has consulted a large number of domestic and foreign relevant literature,and made in-depth research on asset reorganization and earnings management.Taking C.Q.Pharmaceutical Holdings as the research object,this paper analyzes the impact of earnings management through asset reorganization on enterprises.The content of the paper is mainly divided into five aspects: the first chapter is the introduction,which mainly introduces the research background and significance,literature review,research purpose and content,research methods and technical routes;The second chapter introduces the concepts of earnings management and asset reorganization,and uses the theory of information asymmetry and the theory of synergy;The third chapter is the case introduction,mainly including the introduction of C.Q.Pharmaceutical Holding,the ownership structure,the financial status,the process of removing the cap and the earnings management after the asset reorganization;The fourth chapter is the case analysis,including the behavior identification,motivation,means of earnings management of C.Q.Pharmaceutical holding’s asset reorganization and the analysis of the economic consequences of the company’s earnings management through asset reorganization;The fifth chapter is the conclusion and suggestions,and puts forward some suggestions for the future development of the company.Through the analysis of the financial data before and after the assets reorganization of the company,it can be seen that if the listed companies want to use the assets reorganization for earnings management,they can make the net profit of the current year reach a very high value,and then successfully remove the cap.However,this opportunistic method can not improve the company’s operating conditions and has little effect on the company’s long-term development.This paper takes C.Q.Pharmaceutical Holding as the case object.By studying the motivation,means and economic consequences of the company’s earnings management through asset reorganization,it hopes to provide some suggestions for the company’s future development and provide case reference for the academic field.In addition,it can also improve investors’ ability to identify the company’s earnings management.