A Case Study On Earnings Management Of Metersbonwe From The Perspective Of Corporate Governance

With the ever-changing external market and the gradual intensification of competition,in order to maximize the business objectives of the enterprise’s market value and manage their own utility,some enterprises choose earnings management as a tool to adjust operating activities in order to quickly adjust earnings data,manipulate and modify the performance of financial statements.Moderate performance management can support business development,but excessive performance managernent undermines the credibility and reliability of accounting information,reduce the quality of accounting information disclosure,distortion of listed companies’ accounting information,the sound performance of the financial markets,investors’ losses,and even financial fraud.Effective corporate governance can not only effectively alleviate the principal-agent problem,but also effectively reduce the degree of information asymmetry and inhibit the earnings management degree of the company.This paper selects Metersbonwe as a case study of earnings management from the perspective of corporate governance.Reviewing the current scientific literature in the country and abroad,according to the relevant theories to clarify the research ideas and research scheme of this paper.Combined with the basic operating conditions of the company and the existing corporate governance structure,determine the existence of different types of earnings management calculation,and methods for managing the gains of large property loss pools,using one-off gains and one-off losses to improve profits,reduce costs there are three methods:short-tens earnings improvement.This paper analyzes the motivation of manage the benefits derived from the internal and external governance environment.,and concludes that there are some governance defects in internal governance,such as the dominant shareholding structure,too many part-time independent directors,malfeasance in the internal supervision of the board of supervisors,and frequent replacement of core managers,However,the external governance environment has defects such as poorly developed capital systems,poorly developed rules and legislation.and inadequate information disclosure,which create external conditions for earnings management.Although the implementation of surplus management has resulted in improved short-term effects,there has been no significant improvement in profitability and growth in the long run.Based on the above analysis,this paper recommends that Metersbonwe should strengthen internal governance,establish a diversified shareholding structure,enhance the robustness and standardization of the board of directors,strengthen the supervisory function of the supervisory board and establish an active and effective incentive and disciplinary mechanism for executives;further establish a fair,mature and good external environment,accelerate the pace of capital market construction,improve relevant regulations and codes and sound information disclosure system to provide a good environmental foundation for corporate governance.In this way,we can control the extent of surplus management of companies,truly achieve long-term healthy development,enhance investor confidence and provide a boost to the development of China’s securities market and the stable and rapid development of the market economy.