C Corporation Earnings Management Research

At the moment,many of the companies warned about the risks of delisting in China have problems with earnings management,and some are guilty of financial fraud.However,due to the continuous optimization of the supervision and management mechanism of the domestic securities market,the methods of earnings management that can be used are gradually becoming less and less,and some managers are more willing to use the real earnings management that is less risky and more difficult to be found to achieve the purpose of turning losses into profits.However,in many cases,the massive use of earnings management or the incorrect use of earnings management will cause accounting information distortion,which cannot correctly reflect the actual operating situation of the enterprise.In this way,on the one hand,it is unfavorable to shareholders and leads to investors to make incorrect decisions;on the other hand,it will affect the correct decisions of enterprise management and cause certain harm to the normal development of enterprises.In the research of this paper,the C company as a case,based on the earnings management of the related concept,first against the company's overall situation and the "cap" picked blieve course,at the same time using way to identify a series of earnings management such as trend analysis,abnormal profit excluding method,etc.,for the enterprise in 2015-2017 the period of financial data,which can identify by the enterprise earnings management behavior,at the same time,by adopting a measuring model of earnings management,the implementation of the verification;For the enterprise to use after effective analysis of earnings management way,it is concluded that the way to use the enterprise have to dispose of assets,the use of related party transactions,etc.,contact financial data before and after its removable cap at the same time,in view of the business of the company's solvency,profitability and development capacity of transverse and longitudinal comparison and analysis,and establish the enterprise implement earnings management after the economic consequences;Finally,clearly identify the enterprise during the period of earnings management existing shortcomings,such as the lack of government subsidies standards,regulatory system is not perfect and imperfect policy of listed companies,and put forward the corresponding Suggestions,such as perfecting the delisting system of listed companies,perfect the accounting standards for enterprises,strengthen the disclosure of related party transactions and supervision,strengthen enterprise internal management,standardize the government subsidy policy,etc.In this paper,it is emphasized that most of the earnings management measures adopted by C company after it was warned of delisting risk did not solve the practical problems,nor did they enable the company to realize profits,so it could not produce good results for the operation of the company.Therefore,hope that the same type of enterprises can learn from,no longer make the same type of mistakes.Real turnround can only be achieved by improving the actual performance of the enterprise,and should not rely on earnings management.