A Study On The Relationship Between Venture Capital And IPO Earning Management Of Listed Companies On Shenzhen Small And Medium-size Enerprise Stock Board

This study selectes listed companies that went public from 2006 to 2010 in Shenzhen small and medium-sized board as the research object, using the industry adjustment of the modified Jones model to calculate the sample enterprise DA (discretionary accrual) as the characterization of the earnings management. As a result of the industry model of the sample volume requirements, this study selects only the manufacturing industry (C) and information technology industry (G) as the research objects.With the T-test for earning management, we find that earnings management and zero value have the remarkable difference. That means the year before the enterprise's IPO, the firm has earnings management behavior. Through multiple regression analysis, we get some results. Venture capital holdings and DA are negatively correlated at the 1% confidence level, showing that the sample enterprises with VC shareholderings have less earnings management, and the venture capital mechanism can play a supervisory role.Venture capital investmenting time and earning management are negatively correlated at 10% confidence level, which means the longer the venture capital investment time is, the lower the earnings management is. Venture capital holdings and earnings management are negatively correlated at 5% confidence level, which means the higher the proportion of VC shareholdings is, the lower the earnings management is. The board of director and supervisor sent out by VC are negatively correlated at 5% confidence level, which means the higher the proportion of VC'board of director and supervisor is, the lower the earnings management is. Venture capital institutions set up time and the size of assets under management does not have the effectiveness of interpretation.At last, we also sugget that we should make great efforts to develop venture capital industry, and to strengthen the information disclosure of venture capital holdings, investment time and the proportion of VC'board of director and supervisor.