Earnings Management During The Issuance Of Listed Companies In China Orientation

According to the latest statistics of the Wind, exclude the public issuance and hasbeen announced to stop the implementation of additional etc, There are436companies have already implemented or are implementing the private placement hplan in2013, the total accumulated funds to be raised up to865.529billion yuan,prior to the2010,2011,2012, respectively, fundraising288billion yuan,356.1billionyuan,507.6billion yuan, nearly four years A-share private placement financingamount was sustained and rapid growth trend, and peaked in the2013. This shows,with the continuous development of China’s capital market, the private placement hasbecome the preferred way of equity financing of companies. While regulators is notbinding profit indicators to the private placement of listed companies in China, butthe "dominance" phenomenon is still widespread, large shareholders in order toobtain personal benefits, encroachment interests of minority shareholders, theearnings management opportunistic behavior is widespread. Therefore, in thecorporate governance structure is imperfect, lack of case law mechanisms to protectthe interests of minority shareholders and the corresponding constraint largestshareholder under the market mechanism has not been established. large shareholdersmay take advantage of the private placement of new shares of the machine conveyorinterest by earnings management. It has become the focus of attention of scholars.In this paper the private placement is an entry point of Research on EarningsManagement, select the2010implementation of the the private placement of listedmanufacturing companies as samples, on the basis of absorbing domestic and foreignearnings management and the related theories of the private placement, for theexistence and the way of earnings managemen to the private placement process,impact of large shareholders on earnings management and earnings managementaffect the performance of the company’s of makes an empirical testing and analysis.The empirical results show:(1) China’s listed companies in the the private placementprocess, will be used accruals and real earnings management activities of two kinds of control methods;(2) the ratio of the largest shareholder earnings management of theprivate placement process positively correlated with listed companies, indicatinghigher proportion of the largest shareholder, the company conducted the greater thedegree of earnings management. This also explains the major shareholders of listedcompanies in order to obtain private interests, motivated manipulation of earnings;(3)earnings management behavior of listed companies in the the private placementimpact the company’s performance. Among them, accruals earnings managementleads to decline in the short term performance of the company, and real earningsmanagement activities detrimental to the development of long-term behavior. Finally,from the construction and supervision of the securities market system, make relevantpolicy recommendations to protect the interests of investors and improve corporategovernance structure. Strive to provide new enlightenment for the relevantdepartments to strengthen supervision of listed company earnings managementcontrol, regulate the private placement of new shares of Chinese listed companies andimprove the corporate governance structure of behavior listed provide a theoreticalbasis, while for investors to make investment decisions.