The Impact Of Market-oriented Debt-to-Equity Swap On Enterprise Earnings Management

This paper first expounds and summarizes the research on earnings management and market-oriented debt to equity swap,and points out that there are few literatures on the relationship between market-oriented debt to equity swap and enterprise earnings management.After that,the paper introduces the case of China heavy,including the company profile,the implementation process,and market reaction.Then,this paper analyzes the degree of earnings management after the changes of ownership structure of China heavy industries,and finds that the overall level of earnings management after the market-oriented debt to equity swap shows a downward trend,and creatively puts forward the V-shaped change trend of accrual earnings management level of enterprises implementing market-oriented debt to equity swap.Finally,this paper discusses the reasons for the change of earnings management level caused by the market-oriented debt to equity swap,and finds that the change of earnings management level of China Heavy Industries is related to the operating conditions of the enterprises,the introduction of institutional investors and government supervision.At the same time,this paper also gives some suggestions for the implementation of the new round of market-oriented debt to equity policy.