Research On Earnings Management Of Listed Companies Through Debt Restructuring

Under the background of explosive growth of global economy,economic entities are faced with the threat of exposure to market risks while gaining more growth opportunities.In the current capital market,there are numerous cases of listed companies on the verge of delisting due to financial difficulties due to poor operation.Therefore,many listed companies,especially ST companies,in order to ensure that they can continue to trade in the capital market,will use earnings control to beautify the company’s operating profits and achieve the purpose of St topping the cap.This kind of companies usually use the means of earnings control is debt restructuring to alleviate financial difficulties,so as to avoid the turnaround of delisting.Debt restructuring is not uncommon among the solutions to deal with debt of listed companies,but it gives some listed companies room and opportunity for earnings manipulation.On the one hand,debt restructuring can help debt companies ease the financial pressure.At the same time,from the data of financial statements,this part of debt exemption will improve the company’s earnings level in the current year,and also avoid the "ST" warning of the CSRC;On the other hand,debt restructuring can help creditors recover as much money as possible,avoid a large number of bad debts,and minimize the financial damage of the company.However,there are practical problems in debt restructuring of listed companies.In the actual operation process,especially the listed companies that are specially treated,they will not all carry out according to the standards.In order to change the book profit level and beautify the company’s report,the company’s management will carry out debt restructuring activities,The huge restructuring income is included in the current profit and loss,which undoubtedly hinders investors from making the right investment choice and affects the normal order of the capital market.In view of the above reasons,this paper will select a typical case to study how the listed companies that have been specially treated complete their earnings management through debt restructuring activities,and what impact this way will bring to the listed companies,hoping to contribute to enrich the research on debt restructuring and better play the role of debt restructuring.Based on the research background of China’s capital market,this paper studies the existing research on debt restructuring and earnings management,and then combines with the practical problems encountered in the restructuring activities of Listed Companies in China,selects * ST Dongfang thermal power as a case company,and analyzes the debt restructuring activities of the company in detail.Firstly,this paper gives a general description of the debt restructuring activities of the case company from three aspects: the background environment,the specific restructuring plan and the implementation process;Then collect the financial data disclosed by the case company,and compare the relevant economic indicators before and after the restructuring activities to study the economic impact of the restructuring activities on the case company;Finally,on the basis of comparative analysis,it points out the hidden dangers of the company’s debt restructuring activities,and puts forward specific suggestions and opinions for specific problems.