Research On Earnings Management Of Non-recurring Gains And Losses In K Company

At present,the development of chinese economy has entered a high-quality development period from a high-speed growth period,and the capital market is one of the three pillars of the socialist market economy.With the promulgation of policies and regulations such as the Implementation Plan for Perfecting the delisting mechanism of listed companies in November2020 and the Administrative Measures for Information Disclosure of listed companies in March 2021,and the official launch of the reform of the full-scale stock issuance registration system in February 2023,chinese capital market has also continuously contributed to the high-quality economic development from the aspects of entry clearance,information disclosure supervision and export clearance.In this context,the focus of listed companies should also shift from improving the growth rate of earnings to improving the quality of earnings.However,due to the motivation of improving executive compensation and avoiding sustained losses,some listed companies have achieved their goals through earnings management,and non-recurring gains and losses are common ways for listed companies to manage earnings.Excessive or improper earnings management is not conducive to the high quality and sustainable development of listed companies,but also harms the interests of investors and other interested parties.Therefore,this study takes K company as an example to study the non-recurring gains and loss earnings management of listed companies.On the basis of combing the existing literature and analyzing the operating status of K company,the degree of non-recurring gains and loss earnings management of K company is identified by combining various indicators.Starting with the specific components of non-recurring gains and losses,this paper analyzes the ways of earnings management of K company,and then analyzes the motivation of earnings management of K company from the aspects of improving executive compensation and avoiding sustained losses,and analyzes the consequences or effects of earnings management of K company from the aspects of financial situation,stock price and supervision department’s attention.Finally,the paper puts forward some countermeasures to standardize the earnings management behavior of listed companies from three aspects: corporate governance,system improvement and implementation,and supervision.The research mainly has the following findings or suggestions: First,K company has a high degree of non-recurring gains and loss earnings management in recent five years,and has significantly adjusted the earnings of relevant years through a number of non-recurring gains and loss items;Secondly,the degree of non-recurring gainst and loss earnings management implemented by K Company based on various motives has changed greatly before and after the delisting system was improved.Thirdly,the non-recurring gains and loss earnings management behavior implemented by K Company is weak in the improvement of financial situation and the promotion of stock price,which has also attracted the attention of the regulatory authorities.Finally,we can standardize the earnings management of non-recurring gains and losses of listed companies by improving the internal governance system,improving the profitability of the company’s core business,enhancing the supervision of system implementation and information disclosure,refining the measurement standards,improving the information disclosure system of non-recurring gains and losses,and strengthening the audit of non-recurring gains and losses.