A Study On Earnings Management And Earnings Quality Evaluation Of Getein Biotechnology Incorporated

After more than 40 years of reform and opening up,our economic level has been greatly improved,and residents’ income has also increased significantly than before.With the support of economic ability,the medical reform policy for residents has made a lot of reforms and changes.Especially since the outbreak of the novel coronavirus,the Chinese pharmaceutical market has received unprecedented attention.Investors are very concerned about the operation of pharmaceutical companies and earnings management,and their investment enthusiasm is high.Because of this,many listed companies adopt a large amount of earnings management behaviors in order to obtain financing and other motives,resulting in the distortion of their financial information.It also has a very negative impact on the quality of earnings of enterprises.In this context,the subject studies Getein Biotechnology incorporated,which is a research,development,production and sales company of medical diagnostic reagents and medical equipment.Founded in 2002,it has obtained 37 national authorized patents by 2022,among which 3 are invention patents.At present,the company has more than 30 "Getein biology" brand products in domestic and foreign markets.The company was listed on the Shanghai Stock Exchange on July 17,2017.The business performance of the company maintained a high growth rate at the beginning of the listing period,but began to decline after 2020,which was especially reflected in the fact that although the revenue of the year increased,the net profit decreased,and the financial indicators of the company fluctuated greatly in the recent decade.Therefore,through the analysis of this phenomenon,the author thinks that it is the reason that the Getein organisms may take excessive earnings management behavior,which leads to the reduction of the earnings quality of enterprises.Therefore,this paper studies the earnings management of Getein Biotechnology incorporated.and its influence on earnings quality.In this paper,based on Getein Biological company as the main body of research,using correlation analysis method from different dimensions to the company’s earnings management and quality evaluation.First of all,by reading relevant literature to study the concept and characteristics of earnings management and earnings quality,and at the same time to find out the relevant evaluation methods,to find out the internal relationship between earnings management and earnings quality,understanding these contents is the basis of the analysis and research of the subject,on this basis,the identification,motivation and prevention of earnings management are carried out a more comprehensive and systematic study.And lay a good theoretical foundation for the follow-up study.Secondly,it introduces the company overview and industry development status of Getein Biology.Through the overall analysis of the company’s financial report from 2012 to 2021,it identifies the motivation and means of earnings management of Getein Biology.Thirdly,in order to analyze the consequences of excessive earnings management behavior of the company,this paper selects 9 key indicators to conduct a comprehensive analysis of earnings management and its impact on earnings quality,and constructs an earnings management and quality evaluation system.By using scientific methods and relevant research results,the weight of each evaluation index is scientifically confirmed,and factor analysis method is used.SPSS and Excel were used to process the index data of Getein organism from 2012 to 2021,and the earnings quality evaluation score of Getein organism under the influence of earnings management was calculated.Finally,through the analysis of the comprehensive score,it is concluded that the earnings management behavior of the Getein organism can not improve the real operating conditions of the enterprise,but make the earnings quality of the enterprise worse and worse.After finding the deficiencies in the management decision of the Getein organism,In view of the problems existing in the earnings management of Getein biology,suggestions for improving Getein biology and relevant suggestions of stakeholders on how to prevent excessive earnings management of listed companies are put forward.The significance of this study is: enriched the field of earnings management of pharmaceutical companies,and through the study of earnings quality after earnings management for pharmaceutical companies to provide analysis methods,so as to prevent excessive earnings management of enterprises to provide suggestions,improve the scientific management level of pharmaceutical companies.In this research,the case study is used to analyze the earnings management and earnings quality of pharmaceutical companies more directly and specifically,and point out the adverse effects of excessive earnings management intuitively.Of course,due to the limited ability of the author,there are still many shortcomings,such as information collection is not comprehensive and in-depth,whether the selected cases have a good representative is also worth thinking about,for pharmaceutical company earnings management needs more extensive evidence,to study the different circumstances of different companies also need to carry out appropriate analysis,I will continue to improve and explore in the future research.