Research On The Compound Performance Attribution Behavior Of DT Company's Earnings Management

In China's capital market,earnings is usually the most important index of an enterprise,and also the most concerned index of investors.Under the accrual basis,the recognition and measurement of part of income and expenses depend on the professional judgment of accountants.Due to the separation of two rights and asymmetric information in modern enterprises,this subjective professional judgment gives listed companies room to adopt earnings management.Especially because of poor management,ST companies,which are on the edge of delisting,tend to use earnings management to adjust profits in order to keep the qualification of listed companies and management compensation.But earnings management behavior has been more common,ST company management will use a variety of means to cover up earnings management behavior.As a kind of linguistic non-financial information to explain the company's operation,performance attribution and financial information complement each other.Some ST companies will use the method of performance attribution to hide the traces of earnings management in the key year of shell protection,which forms a compound behavior.Scholars at home and abroad have rich research perspectives and achievements on performance attribution and earnings management,but the research on compound behavior is still relatively blank.In view of this kind of problem,this thesis explores the compound performance attribution behavior of earnings management,which has certain practical significance.This thesis selects DT Company which successfully turned losses into shell in 2018 as an example,and uses the modified Jones model and Meindl's research method to quantitatively analyze the earnings management and performance attribution self-interest tendency of the case company.By using content analysis method,this thesis analyzes the objectivity of the performance attribution and the means of compound behavior of the case company.It is found that the case company adopts the methods of selling major assets to related parties and adjusting the capitalization ratio of R&D expenditure to conduct earnings management.However,in the explanation of the performance change,it never mentions it.Instead,it attributes the performance change to the intensification of industry competition,the pressure drop of two funds and the adjustment of industry structure These factors which contribute less to the performance,such as business structure,conceal earnings management behavior,resulting in the reliability and authenticity of accounting information can not be guaranteed.This thesis draws the following conclusions: DT Company has compound performance attribution behavior of earnings management from 2016 to 2018.This kind of compound behavior can hide earnings management,and DT Company relies on compound behavior repeatedly,which brings immeasurable damage to the long-term development of enterprises and investors.Finally,this thesis puts forward some suggestions for the enterprise itself,regulatory authorities and investors,hoping to provide some help for itself,investors and enterprise management.In the future,the research on compound performance attribution behavior of earnings management can be carried out from two aspects: one is the nature and harm of enterprises' dependence on compound behavior.The second is to explore the existence of other forms of compound behavior from the form of earnings regulation.If so,what are its specific characteristics and the underlying reasons need to be found.