Empirical Research On Venture Capital IPO Earnings Management On The

Small and middle‐sized enterprises can ap pear on the market easier than before because of the SME board which bring out in2004and the GEM which bring out in2009. According to these movements, small and middle‐sized enterprises has achieve capacious financing platform. Well withdrawal channel has provided to venture investment either. Increasing venture capital institutions helpd small and middle‐sized enterprises so that they can develop their initial public offering(IPO). During this process, venture invsetment can withdraw successfully and receive appreciation of venture capital. However, many company which going public in china have problem of earnings management. In response to this phenomennon, venture capital institution which regarded as the investor will identify and supervise funded company during the hole process. That action may control the behavior of earnings management from IPO company, or connive even help those funded company start IPO earnings management.Therefore, this thesis will take company which appear on the market from June2004to December2012and other company which appear on the market from October2009to December2012as the study sample, we will use the method of empirical study to examine two issues. The fisrt one is whether the funded company has low degree of earnings management compare with non‐funded company. The second one is whether the high reputation risk investment has more ability to contorl the behavior of earnings management from IPO company than low reputation risk investment.The results in this thesis demonstrate the fact that participation of venture investment do reduce the the behavior of earnings management from IPO company to some degree. However, the influence of our venture investment cannot compare with foreign research result. Meanwhile, the high reputation risk investment do reduce the behavior of earnings management from IPO company in unconspicuous way.According to these conclusions, this thesis present some suggestion about how to prevent the behavior of earnings management, and some enlightenment to develop venture investment industry.