Research On Non-recurring Profit And Loss Earnings Management Of *ST Huayuan

With the development and continuous changes of China’s capital market,the shortcomings of the delisting risk warning system in China’s securities market have gradually emerged,and despite the continuous efforts of regulators to improve the*ST and other related delisting mechanisms,various problems still arise."The existing ST system eliminates the "positive net profit after deduction" indicator,allowing listed companies to return to the market with positive net profit in the following year.The "shell".Many scholars believe that surplus management is surplus manipulation,and although they also affirm the positive effects of surplus management in some ways,they still believe that the negative effects of surplus management outweigh its positive effects,and are therefore criticized by society and public opinion from all walks of life.Taking appropriate surplus management can meet the rationality and inevitability of operation,but excessive surplus management or even financial fraud can lead to accounting information that does not truly reflect corporate operating results,damage the rights and interests of corporate owners,induce investors to make wrong decisions,and affect the long-term development of enterprises.Such behavior also seriously affects the order of the capital market and is not beneficial to the development of the capital market.The research in this paper is based on this,taking methods such as literature reading and case studies to sort out relevant literature at home and abroad,summarize the direction of scholars’ research and the results achieved,and then provide the theoretical basis for the research in this paper.After determining the general research idea,this paper selects *ST Huayuan as the research object,collects and organizes financial data and information,and analyzes the company’s surplus management behavior and the current situation in detail.The specific steps are: firstly,using the empirical identification method and model identification method,we test that *ST Huayuan does use non-recurring profit and loss surplus management methods to adjust its surplus;then we analyze the factors influencing its surplus management from the aspects of avoiding delisting,management compensation and other motivations,financing needs,and market regulation mechanism;then we analyze the surplus management methods of *ST Huayuan and conclude that the disposal of non-recurring profit and loss,accounts receivable impairment provision and government Finally,the positive and negative consequences of surplus management are analyzed.This paper finds that although the surplus management has prevented the delisting of *ST Huayuan,it has not changed its business status,which has led to the damage of corporate and investors’ interests and is not conducive to the healthy and long-term development of the enterprise.In response to the problems found in the study,relevant suggestions are made to improve accounting standards,corporate operations and internal control,external regulation and investors respectively.This paper emphasizes that *ST Huayuan can avoid exit from the market by adopting surplus management behavior,but the real business status of the enterprise cannot be changed,and the crisis faced by the enterprise still exists.For *ST enterprises,surplus management can avoid the risk of being delisted,but in the long run,it cannot solve the essential problems of the company,and it may still be delisted in the end.