Research On Earnings Management Behavior Of ST Company ——Take The ST Jiadian As An Example

^*ST system is a unique delisting risk warning system in my country.It urges companies to improve their business performance through special disclosure of financial status or problems in their daily business activities;at the same time,it acts as a warning to stock investors.Protect the interests of stakeholders including investors.Under my country’s relevant regulations,if the net profit is still less than zero in the third year,it will stop trading in the securities market,and if the status does not change in the next year,it will be delisted.For the purpose of protecting the shell,financing,executive contracts,etc.,^*ST Company will choose to take advantage of the imperfection of relevant regulatory systems without violating accounting standards when its main business capabilities cannot be improved.Adjust financial information to affect accounting income information reported externally,whitewash financial statements,and avoid delisting crisis.However,in the long run,this behavior of earnings management to adjust profits will not only not allow the company to achieve real profit growth,but will also mislead profit stakeholders to make wrong judgments,thereby causing certain adverse effects on the capital market.Therefore,the phenomenon that my country’s listed companies use earnings management to adjust profits has certain research significance.This paper takes earnings management as the research direction,and selects Jiadian as a case company.Jiadian suffered losses for two consecutive years in 2015 and 2016,and was thus put on the hat of ST,and then for the preservation of listing qualifications and financing.Demand and other motives,through the use of earnings management methods,successfully achieved profitability in 2017,and successfully "removed the hat" in 2018.This article mainly analyzes Jiadian’s earnings management motives,methods and their impact on earnings management.First,this paper uses the literature research method to sort out the existing definition of earnings management concept,the motivation,means and subsequent impact of earnings management;The credited profit method and the revised Jones model are used to quantitatively analyze the degree of Jiadian’s earnings management;thirdly,the motivation of Jiadian’s use of earnings management methods to adjust profits is explored;finally,the event research method is used to analyze the "cap" of Jiadian.The impact of this event on its stock fluctuations,and analyze the changes in its financial performance after its "cap removal",and put forward corresponding governance suggestions for the management problems of Jiadian Co.,Ltd.found in the research.The final research findings of this paper are as follows: First,by using the overall accrued profit method model and the revised Jones model to identify,it is verified that Jiadian Corporation did use earnings management to decorate profits in 2017.Through further analysis,it is concluded that its main use of debt is Restructuring,accrual and reversal of asset impairment losses,disposal of non-current assets and increasing related party transactions.Second,upstream and downstream market fluctuations can easily lead to financial difficulties for motor companies.Through the analysis of Jiadian from 2015 to 2018,it is found that when motor companies face the global economic downturn and the industrial market is sluggish,it is easy for downstream iron and steel companies to fall into financial difficulties.,Changes in the oil market have resulted in a decline in sales and excess capacity,which in turn led to losses for companies.Third,the use of earnings management for profit adjustment will not only cause serious misleading to users of corporate financial reports,but also have a very adverse impact on the company’s sustainable development.Any help with sustainable operations.Fourth,in order to minimize the use of earnings management methods by listed companies to manipulate net profits and damage the capital market and stakeholders,the strength of all parties is needed.Oversight needs to be put in place,and investors need to invest with caution.