Empirical Study About The Correlation Between Accounting Information And Stock Price Of Listed Companies In GEM

With the development of Chinese reform, the private economic development environment has become increasingly favorable, and the development of private enterprise has become increasingly rapid in the recent decades. Many private enterprises in the management process began to focus on the application of modern enterprise management system. Meanwhile, with the development of financial markets, private enterprises have also begun listing; the number of private listed companies is growing continuously in a short period of time. With growing of the companies, the problems of company management have gradually become prominent.Since extraordinary items have their characteristics of one-time and chanciness. It mainly relays on the subjective judgments and ties up with the behavior of earnings management, so that the earnings management behavior of the managers can obtain an immense manipulating space. Thus, it is necessary to study extraordinary items, because extraordinary items have become the Primary means of earnings management in the listed company.In recent years, Scholars have begun to give characteristics about control rights of private listed companies more and more attention, and its researches are increasingly rich, such as study of its impact on corporate value, impact on the financial crisis, impact on the M&A performance in the target company, especially for the separation of control and cash flow rights in the family business. It is usually studied with corporate value and so on. The increasing maturity of these theories also provided the necessary conditions for our research on the relationship between characteristics about control rights and extraordinary items of Chinese private listed companies. By reading many classic literatures about earnings management, extraordinary items, ownership structure of private listed companies, the paper makes a groping research on characteristics about private control of private listed companies effecting extraordinary items which is based on the former studies.The paper analyzed the extraordinary items and features of control of private listed companies first, and then do some empirical study about the relationship between them. This paper based on two basic theories put in order and analyzed the feature of control of private listed company and extraordinary items, and then discuss about stake of largest shareholder and analysis of relationship between separation of two rights and extraordinary items. This paper proposed two suppose base on this, the first one is that the degree of interest between the square ratio of the first largest shareholder of private listed company and extraordinary items showed negative correlation. The second one is that the degree of interest between the separation of control right and cash flow right of shareholder of private listed company and extraordinary items showed positive correlation. It chooses the data of private listed companies as objects, which from ShenZhen and ShangHai after new rules was published. It test and analyze the influence from extraordinary items to net profit through the ratio of kinds of districts. And we can see that extraordinary items accounted for a large number of net profit, it is very import to net profit. It provide the descriptive statistic analysis of features of control of private listed companies and build linear regression model, use control and separation of cash flow rights, stake of largest shareholder, asset-liability ratio as model parameters to measure the features of control, study the influence from them. It examine the relevance about control and separation of cash flow rights, stake of largest shareholder, asset-liability ratio, use level of extraordinary items form companies through regression analysis.The structure of this paper is:Chapter one introduction. This chapter discussed background and means of study, proposed main content and structure of study later, elaborate method of study and main contribution of this paper.Chapter two review of papers at home and abroad. This chapter introduced the basic theory proposed by scholars and study result from two aspects, one is influence of earnings management based on extraordinary items, the other is influence from feature of control to accounting earnings. It introduced our situation of earnings management of civil private listed company with domestic actual situation and given comprehensive comments about it. It supplied fixed theoretical basis for analysis of feature of control of domestic private listed company、analysis of extraordinary items, and also supplied the suppose for empirical study.Chapter three feature of control and related theoretical basis of extraordinary items. This chapter some features of control of our private listed company. These features are higher separation between control and ownership, Minority shareholders control company, and control mode includes pyramid control mainly. Then it defined range of extraordinary items first, introduce content of extraordinary items and present situation of disclosure of extraordinary items. It applied theoretical basis for later chapter to propose suppose and analysis of regression.Chapter four empirical study. This chapter proposed suppose first,and do theoretical analysis of influence from feature of private listed company to extraordinary items. Then present simply influence of net profit from extraordinary items with descriptive statistics, describe and static factors of feature of private listed company. At last, it use the method of multiple linear regression to analyze and discuss the relationship between feature of control of private company and extraordinary items.Chapter five result. This chapter summarizes main results of this paper based on analysis of theoretical and empirical analysis, and provides related advice about macro policy and micro extraordinary items related provisions according to results.After the empirical analysis, we found that private listed companies more generally manipulate the time and intensity of extraordinary items to make earnings management. The largest proportion of share holding has a great impact on extraordinary items, there are inverted U-relationship between extraordinary items and the largest proportion of share holding. From the result of actual poof, it’s not distinct between Separation of control and cash flow right and extraordinary items. But it’s obviously that the enterprise which separation degree is higher, it use extraordinary items and violate minority shareholders more frequently. The differences of actual poof between theory indicate that our system of reveal is imperfect, each listed company has it’s own methods for calculation. But the significant of relationship must be verified in the study later with continuous improvement of regulars of our stock market. According to the discovered problems in the empirical analysis, the paper put forward several pertinent suggestions that improving the accounting standards system, improving the internal governance institutions, strengthening development and implementation of equity rights, strengthening the actual controller of the compulsory information disclosure, accelerating the development of institutional inventors.The main contribution of this paper is that it does some targeted study about private listed company which as a study objects of specific property, with feature of control. Earnings management is one of hot points for scholar study, there are many scholars study that in our country, but these studies mostly uses whole listed companies or financial loss listed companies as their study object, lack of study about a class of property of listed companies, especially lack of study based on earning management of extraordinary items, and the study about subject of special feature of property. Therefore, this paper chooses private listed company as study object to strengthen intensity of study of this field.Besides, this paper analyze special features of control of private listed company, discuss these features how to affect earning management which is represented by extraordinary items, and supplement study about private listed company from the angle of feature of control. There are many different points between private listed company and state-owned listed company, agency problem caused from that become one of focal point of recent studies,but it only focus on collaborative effect and digging effect、major shareholders invade minority shareholders and influence about company performance. This paper breakthrough the limit, focus on separation of control and cash flow right which caused by the relative concentration of equity and pyramid structure of holdings, preferences about debt financing and influence about extraordinary items from special feature of control of private listed company, enriched the study about earning management that is a special study object with different point of view.At the same time, this paper has some shortage. First, this paper only choose stake of the first largest shareholder and separation of cash flow rights as representative of features of control to study, when it choosing represent variables of features of control of private listed company. Some other related factors may be ignored, so it is need to be completed in future research. Second, extraordinary items involved a broad range, from the current situation, every listed company’s revelation and calculation of extraordinary items can not be compared with each other. And this paper just examine the total data, there is not a specific standard to refer in the process of removing extreme value from data. So, it removed extreme value just according to previous experience and these especially abnormal values, some extreme value maybe remained in data unconsciously, this may cause some deviation of result of linear regression. These factors perhaps affect the result of empirical study of this paper.