An Empirical Research on How the Delisting Rules Influence the Profit Management of Listed Companies

The listed companies alter their profit management policies in different stages of delisting rules.According to empirical research results,the listed companies reported after 1998 an obviously underestimated profit in the previous year of being specially treated,whereas after 2001 they usually boasted their profit mainly through changing the non-recurring profit and loss items in the subsequent years of ST.The supplementary regulations launched in 2003 significantly reduced the retrospective adjustment cases of loss-incuring listed companies,and the companies kept their profit management policy relatively steady.The conclusion of this paper will provide an empirical reference for perfecting the delisting rules in China.