Empirical Study on the Correlation Between Company's Financial Characteristics and Profit Manipulation - Based on Information of Listed Companies in IT Industry

摘要

In China, the earnings indicators have been manipulated in quite many listed companies. If investors make their predictions based on these un-stabilized indicators, the result is not guaranteed to be correct. This article is trying to analyze the overall financial characteristics of companies that are subject to profit manipulation and discover the underlying principles. By revealing the financial characteristics of those companies that prone to profit manipulation, investors will be guided to identify the listed company's true profitability.