Research On Earnings Management In Step-by-step Mergers And Acquisitions Of Enterprises Not Under The Same Control

Since the outbreak of the world economic crisis in 2008,China's economic development has inevitably been adversely affected.Although some listed companies have been working hard to develop their business,the situation has not improved,so they can only start to find new ways to save their business.Many companies choose to adopt the method of mergers and acquisitions to achieve the substantial development of enterprises and in this way to optimize corporate asset resources.Listed companies can not only effectively integrate resources by using mergers and acquisitions,but also improve their core competitiveness,thereby increasing market share and reducing their operational risks.In recent years,China has shown strategic support for the development of strategic emerging industries.Therefore,more and more listed companies choose to integrate the industry through mergers and acquisitions or cut into new industries.But the main reason people pay attention to M & A is that there is a motive for earnings management throughout the M & A period.For the purpose of maximizing their own interests,the senior management of listed companies often influence the preparation of external financial reports for earnings management by choosing different accounting methods,changing accounting estimates,or real transactions,although these methods are all in accounting standards.2.Accounting regulations allow,but it will still distort the quality of the company's accounting information and mislead investors.In recent years,a large number of cross-country,cross-sector,cross-industry mergers have emerged.Most of these mergers are not mergers under the same control,especially through step-by-step mergers and acquisitions to achieve non-common control mergers The problem is that because the accounting of step-by-step M & A is more complicated than that of one-time merger and acquisition,it is more difficult for investors to notice the use of step-by-step mergers for earnings management.The cost of a step-by-step merger and acquisition of an enterprise under the same control is determined based on the book value of the owner's equity of the acquiree,while the cost of a step-by-step merger and acquisition of an enterprise that is not under the same control is determined based on the fair value measurement.In view of the fact that China's market economy is not quite perfect,and the measurement of fair value requires a lot of professional judgment,it is difficult to accurately measure it.At the same time,the transaction characteristics of step-by-step mergers and acquisitions can also help companies avoid high-value goodwill,so companies may use Step-by-step M & A transaction characteristics to adjust profits to achieve the purpose of earnings management.In addition,accounting standards will not be revised continuously,which provides operating space for corporate earnings management.In response to this problem,this article will combine the actual case of Qingdao King King to analyze the earnings management of companies in step-by-step mergers and acquisitions under different control.This article introduces related theoretical results from the concepts of mergers and acquisitions and earnings management.Based on the excellent research results of previous generations,the theory is put into practice,and the process of Qingdao King King's step-by-step acquisition of Hangzhou Youke is analyzed in detail.Qingdao King King uses this step-by-step M & A to regulate profits and the economic consequences.Finally,combined with actual cases,it is concluded that it is not necessary to confirm the large investment income generated by the step-by-step merger and acquisition at one time,but to confirm it step by step according to the apportionment period of asset appreciation,so that it can reflect the listing more realistically.The quality of corporate accounting information.