Research On Earnings Management Behavior Of DT Telecom Technology Company

Earnings management has always been a hot topic in the field of accounting.With the continuous development and maturity of China's capital market,the scale and number of listed companies have developed and grown,and Earnings management activities have become popular among enterprises.Proper Earnings management can promote the development of the company to a certain extent,but excessive Earnings management will most likely disrupt the normal trading order of the capital market,which cannot be conducive to the maximum use of the resources of the capital market,and may even adversely affect the investment decisions of investors,making them unable to make correct decisions and reasonable investments,distorting their investment intentions and causing them to suffer incalculable losses.As China's capital market is not fully developed and mature,which leads to the problem of "difficult delisting",coupled with the implementation of the ST delisting system provides a certain "trial and error space" for loss-making listed companies,i.e.,listed companies can change their profit level in the third year of continuous loss through In addition,the implementation of the ST delisting system provides some "trial and error" for loss-making listed companies,i.e.,listed companies can change their profit level through Earnings manipulation in the third year of continuous losses to turn losses into profits and retain their "shell" resources.However,the act of Earnings management is only to conceal the true profitability of the company,and does not represent the improvement of the company's operating ability.Therefore,in view of the above phenomenon,this paper takes DT Telecom Technology Company as the research object to study the Earnings management behavior of its "shell".First,it identifies whether DT Telecom has Earnings management problems;second,it analyzes the motives of DT Telecom's Earnings management;third,it examines what specific Earnings management techniques DT Telecom uses;fourth,it investigates the reasons why DT Telecom can implement Earnings management;fifth,it discusses the consequences of DT Telecom's Earnings management behavior;sixth,it examines the reasons for DT Telecom's Earnings management behavior based on the following perspectives Fifthly,we discuss the consequences of DT Telecom's implementation of Earnings management;sixthly,we propose relevant countermeasures based on the above analysis.This paper firstly collates and elaborates the literature and theories related to Earnings management,selects the data of DT Telecom for the last five years from 2016 to 2020,and conducts specific research and analysis on the company's Earnings management behavior from the above-mentioned perspectives using case study method,literature research method,comparative analysis method and statistical analysis method,and finally draws the following conclusions: DT Telecom's motives for Earnings management mainly include shell preservation In addition to helping the company turn its losses into profits and successfully save its shell,this behavior does not bring more positive impact to the company,but is detrimental to its longterm development and even damages the interests of different subjects to a certain extent.In addition,this paper proposes countermeasures to regulate DT Telecom's Earnings management behavior in terms of accounting standards and delisting system,external supervision,corporate governance and suggestions to investors.