Earnings Manipulation Study Of The Seasoned Equity Offering Of Listed Companies In The Machinery Equipment And Instrument Industry

China’s securities market has developed at a high speed and has gone through aroad which the capitalist countries have walked on for nearly100years. The profitsmanipulation phenomenon of listed companies has caused widespread concern ofpublic opinion, academia and government regulatory authorities. The existence of thisphenomenon, will not only mislead internal and external stakeholders out of makingright decisions, but disrupt the market order, and have a directly bad impact on thehealthy development of the securities market. It can encourage listed companies tostrengthen their internal management and improve the relevant laws and regulationsthrough studying this subject of profit manipulation seriously, thus facilitate thesupervision of government departments to prevent the phenomenon of profitmanipulation from happening.This paper has described the background and importance of this study, and theconcept of earnings management and profit manipulation. It has also described theresearch content, method, purpose and framework. It contains not only the overviewand analysis of Manipulation profits theory in both China and other countries, butdeeply study of the Main motive, means, and discrimination model of profitmanipulation.Based on the above analysis, This paper select the data of more than200listedcompanies during the machinery, equipment, instrumentation industry (C7) from2008to2010, and then use the distribution of earnings method and accrued profits methodto study the problem for issuing profits manipulation of listed companies, firstly,analysis the possibility of profit manipulation qualitatively, and then quantitativelycalculate the degree of issuing profits manipulation of listed companies by modifiedJones model which adds a new variable, so that identify the behavior characteristics ofthe profit manipulation of listed companies in China before and after the issuing. Inaddition, this paper mix the perspective of finance and Efficient together, addefficiency indicators based on the selection of financial indicators, and selectindicators from6aspects: capital structure, solvency, development capacity,operational capacity, liquidity and efficiency. This paper establishes regression model for further empirical analysis for the influencing factors of the profits manipulation oflisted companies. Finally, based on the theoretical analysis and empirical studies, thispaper came to some conclusions and put forward relevant policy recommendations.