Research On Earnings Management Of Jianyou Shares Based On The Perspective Of Equity Incentive

With the continuous development of my country’s capital market,investors’use of the financial information of listed companies has been continuously improved,and the quality of the disclosed financial information has also attracted more and more attention.However,more and more companies carry out earnings management by adjusting accounting estimation methods or changing real business activities,which will not only reduce the quality of earnings of the company and cause users of financial reports to be unable to make correct decisions,but also affect the company’s earnings.It has an impact on its own production and operation.Therefore,it is of great significance to explore the motivation,means and economic impact behind earnings management behavior.The equity incentive system is an effective means to solve the principal-agent problem caused by the separation of company ownership and management rights.The number of listed companies using the equity incentive system in my country is increasing year by year.However,due to the phenomenon that enterprise operators adjust the corporate earnings information in order to achieve the performance conditions of equity incentives,the company’s equity incentives cannot obtain the expected results.Therefore,the reliability of the annual report of the listed company’s equity incentive system is questionable,and it is necessary to conduct a special study on the earnings management behavior of the listed company in this period.This paper mainly studies the problem of excessive earnings management of listed companies during the period of equity incentives and refinancing,in order to achieve the conditions for lifting sales restrictions and the regulatory conditions for refinancing,and selects Jianyou Co.,Ltd.(603707.SH)as the research object.The model and the horizontal and vertical comparison of financial statements identify the signs of earnings management in this company,and analyze the motivation,means and economic impact of earnings management in Jianyou Co.,Ltd.Based on the analysis of the case companies,the study found that:(1)Jianyou Co.,Ltd.has earnings management behavior.(2)The earnings management of Jianyou Co.,Ltd.has two motives:equity incentive and refinancing motive.(3)Jianyou Co.,Ltd.conducts earnings management by reducing discretionary expenses,relaxing credit policies,increasing credit sales,increasing non-recurring gains and losses,and not clearly distinguishing research and development stages.(4)The economic impact of the earnings management of Jianyou Co.,Ltd.has both positive and negative aspects.Based on the above research findings,this paper finally makes recommendations for investors and other information users,regulators and policy-making institutions.