Research On Real Earnings Management Behavior Of ~*ST Listed Companies And Its Impact On Performance

Special treatment system is unique in chinese security markets.It makes special marks to listed companies which have financial or other abnormal problems.Special treatment system is to put pressure on problem enterprises and make them improve.And remind investors to pay attention to investment risks.However,because the financial problems are difficult to improve in a short time,listed companies will use real earnings management to avoid delisting risk.As a result,the delisting rate of China is lower than that of the developed countries’ capital markets.Firstly this paper sort out the literature on real earnings management and its impact on performance of domestic and foreign.Based on relevant research,this paper verifies the impact of real earnings management on enterprise performance through empirical analysis.This paper takes the A-share listed companies from 2015 to 2017 as a sample for empirical analysis.Establish the regression model of real earnings management and performance.Clarify the impact of real earnings management on performance and compare the differences between ST enterprises and normal companies.The regulations of special treatment system affect the real earnings management mode that selected by special treatment enterprises.In the case analysis,this paper takes *ST Shenji as an example to analyze the company’s earnings management behavior.Introduce the background of the case company,the special treatment process and the abnormalities in the financial statements.Analyze the real earnings management behavior of * ST Shenji.Its motives include avoiding delisting,ensuring management salary and maintaining the company’s image.Its methods include selling assets to related parties,debt restructuring and government subsidies.In the analysis of the performance of the case company after real earnings management.Based on the empirical conclusion,this paper analyzes the performance of the case company after real earnings management.Using entropy weight method to calculate the comprehensive financial performance of enterprises.And analyze the specific financial indicators of the company from four aspects: profitability,solvency,operation ability and development ability.Analyze the market performance of the company through the fluctuation of stock price.Get the impact of real earnings management on * ST Shenji performance.The above analysis concludes that real earnings management has negative impact on corporate financial and market performance.And * ST companies have a more serious negative impact on financial performance than ordinary companies when they carry out real earnings management.Compared with market performance * ST company’s real earnings management has greater damage to financial performance.This paper studies the real earnings management behavior of * ST enterprises and its impact on performance,so as to help investors understand the accounting title concerned by * ST enterprises in real earnings management.It is helpful for * ST company to correctly understand the real earnings management behavior and provide countermeasures for * ST company.At the same time,it also provides policy suggestions for improving the delisting system,information disclosure and market supervision.