Empirical Study On The Earnings Management Issues Of China's A-share Listed Companies During The IPO Process

Securities markets in developed countries is the development of commodity economy to a certain stage of the product of natural evolution. As a result of a special system, compared with mature markets in developed countries, China's stock market had a more serious market distortions. In order to going public and highly priced, useing of its securities regulatory authorities and the information asymmetry that exists between and contract incompleteness, IPO company's management has a strong motivation for earnings management, seriously undermined the credibility of the basis of China's securities market, mislead investors , is not conducive to capital markets optimize the allocation of resources, will ultimately harm the entire market's confidence and long-term development. In light of the above , we believe that the study of Chinese A-share market IPO earnings management company, as well as pre-and post-issue earnings performance will show some different characteristics. In this paper, in-depth exploration into A-share listed company in the process of IPO earnings management,using an Empirical Study of the combination and standardization of research, qualitative analysis with quantitative analysis to study. Empirical research and quantitative analysis are the key parts.In this thesis, based on the research of both foreign and domestic scholars, studies the Shanghai and Shenzhen A-share IPO companies' earnings management through a combined theoretical and empirical analysis. This thesis also combines the China A-share IPO companies and the earnings management using the latest data. This thesis further applies the newly promulgated "Accounting Standards for Business Enterprises" to the company's IPO earnings management analysis, which has helped reveal the latest earnings management tools that the company in the IPO process may employ. The theoretical analysis part includes the introduction of the content of IPO, the earnings management and the Jones Model. The empirical study part contains assumptions, description of statistical analysis, parameter testing of single-factor analysis of variance, correlation and multiple linear regression analysis.The basic conclusions of this thesis lie:①there is a significant difference before and after the IPO in China's listed companies. The performance before the IPO is significantly different from that two consecutive years of IPO. The performance two years after the listing shows downward trend.②the application of modified Jones Model in China's A-share is limited. The author re-modified the model which proves to be more in line with China's securities market; so the re-modified model should be chosen. And at the same time proved that listed companies in the IPO process in the manipulation of accounts receivable.③listed companies in the IPO will be around through the accruals adjustments to the project earnings management.