Research On Earnings Management Of Loss Listed Companies In China

In April 1998,the ST system was officially implemented in my country’s Shanghai and Shenzhen stock markets.The ST system means that the China Securities Regulatory Commission will carry out special handling of the stock transactions of listed companies with abnormal conditions and implement delisting risk warnings.The effective implementation of the ST system can help investors screen out listed companies with abnormal operating conditions,reduce investors’ risks,protect the interests of investment and investment,and promote the healthy development of the capital market.When a listed company is issued with a delisting risk warning,the company will have the risk of delisting.Faced with huge "shell" pressure,the management of the company cannot quickly improve its operating performance in a short period of time,and can only use the implementation of surplus Management behavior will turn losses into profits in a short period of time,thereby removing the delisting risk warning.Based on this background,this article selects ST hippocampus as the research object,and conducts a case analysis of ST hippocampus’ earnings management behavior.This article first systematically summarizes the research background,research significance,earnings management concepts and related theories,and then introduces the basic situation of ST hippocampus,the identification process of earnings management and the ST hippocampus earnings management process.At the same time,it analyzes in detail the motives and methods of ST Hippocampus earnings management.This article also conducts financial analysis and Jones model testing on ST Hippocampus from the perspective of quantitative analysis.The combination of qualitative analysis and quantitative analysis proves that ST Hippocampus has carried out in 2017-2019.Earnings management.Then this article analyzes the follow-up impact of ST Haima’s earnings management,and explores whether its earnings are sustainable.Finally,in response to the problems reflected by ST Haima,governance suggestions to circumvent the earnings management of ST companies are put forward.In order to maintain listing qualifications and avoid delisting,ST Haima used a series of capital operations for earnings management.Although it helped the company withdraw the delisting risk warning and avoided the embarrassing situation of being suspended from listing,the income generated was not sustainable.The profitability of the company is still weak,and the response of the stock market is not optimistic.It can be concluded that the company’s management needs to improve the main business,carry out technological innovation,and increase the main business income.From a regulatory perspective,regulatory agencies need to improve relevant legal systems and external supervision mechanisms,and build an effective regulatory system to control the prevalence of ST companies’ earnings management.