ST* Company "Shell-keeping" Earnings Management Research

The CPC Central Committee and The State Council attach great importance to the development of the capital market.The improvement of listed companies quality has become the top priority of deepening the all-round reform of the capital market,strengthening the supervision of listed companies,improving the issuance,listing,information disclosure and other related systems has become an important task of the CSRC and other departments.Improper earnings management behavior exists in some listed companies,especially the *ST company specially treated by CSRC,which damages the quality of accounting information disclosure of the whole market.The research on "shell-keeping" earnings management of *ST company is helpful to curb related phenomena and improve the quality of listed companies and accounting information disclosure.Therefore,it is of great value to study the "shell-keeping" earnings management behavior of *ST Company.Based on the background of ST system and theories of earnings management,this thesis studies the "shell-keeping" earnings management of *ST listed companies.On the whole,the present situation of "shell-keeping" earnings management of *ST company is analyzed statistically,and the common means of earnings management is introduced.The representative XM company is selected as the case study object to analyze the behavior of "shell-keeping" earnings management of XM company through asset impairment provisions and related party transactions.The basic operating situation,financial indicators and "shell-keeping" case background of XM company are briefly sorted out.The modified JONES model is used to test the behavior of "shell-keeping" earnings management of XM Company,and the accrued profit model is used to calculate the degree of "shell-keeping" earnings management of XM company.It is found that there are signs of earnings management in the process of "shell" and the scale is large.The motivation of earning management is analyzed based on XM company’s operating situation,and the means of "shell protection" earnings management is analyzed by accounting policies,item details of related statements and related party transaction information.From the case of XM company,four main problems exposed in *ST company’s "shell-keeping" earnings management are concluded: low efficiency of delisting system,loss of information disclosure supervision,accounting standards to be revised,internal control failure and short-sighted management.From the perspectives of system construction,government supervision,accounting standards and corporate governance,this thesis puts forward four specific suggestions on reforming delisting system,strengthening government supervision,improving accounting standards and improving internal governance.The research results of this thesis can provide some inspiration for the academic circle to further study the earnings management topic of *ST Company,and provide reference experience for curbing the chaos of "shell-keeping" earnings management of*ST Company and deepening the reform of China’s securities market.