A Study On Earnings Management Of ST Companies Based On Hat Taking ST Xinji As An Example

ST system is a delisting risk warning system issued by Shanghai and Shenzhen Stock Exchanges in 1998.In order to help it get rid of its operating difficulties,it also reminds investors to pay close attention to its potential delisting investment risks and safeguard the legitimate interests of investors.As the domestic listing qualification is very precious,all listed companies cherish its listing qualification,ST companies in the case of failing to turn losses into profits through normal corporate experience,usually adopt earnings management means to achieve the purpose of maintaining the listing qualification.This kind of deliberate earnings management has some accounting manipulation behavior,this behavior will lead to the non-standard market economy,affect the interests of external investors,affect the stability of the domestic securities market.This thesis starts from the Angle of ST company’s earnings management cap,selects Xinji Energy company as the research object,analyzes the motivation of earnings management and economic benefits after taking off the cap.This thesis takes ST Xinji Company as the research object.By inquiring about the relevant theories of earnings management at home and abroad,the motivation and means of taking off the hat,based on the existing research,it analyzes the motivation of earnings management of ST Xinji Company,and identifies the earnings management behavior of ST Xinji company by using Jones model and total accrued profit model.Then use the financial index to analyze the company using earnings management to successfully take off the cap effect.The study found that ST Xinji earnings management motivation is to take off the cap,financing and compensation motivation,in order to achieve the purpose,ST Xinji use the use of asset impairment loss,cost control and disposal of assets and other earnings management means to turn the profit into a profit.At the same time,financial indicators were used to analyze the effect of the company’s successful removal of earnings management,and it was found that although the company successfully removed its earnings management cap,its profitability,debt paying and development capabilities were not improved.The removal of earnings management cap had limited effect on the overall development of the company,and could not bring a turnaround for the development of the company in the short term.In view of the impact of ST company’s earnings management cap on the domestic securities market,this thesis puts forward optimization suggestions from the three aspects of ST company,government and external regulatory agencies and investors,in order to solve the problem of ST company’s earnings management cap impact on the securities market provides a certain reference value.