The Impact Of Syndicated PE On Earnings Managerment Of Listed Companies On GEM

Private equity investment refers to the use of non public way to raise funds from specific investors,an equity investment fund invest companies,like the invested enterprises,mergers and acquisitions,and equity transfer and then choose some ways to exit.In the GEM listed companies,most of them have private investment background.Syndicate refers to two or more than two private investment institutions in the express or implied joint investment agreement on the basis of the same subject of investment.This is very common,it is in the private sector participation reached a joint investment agreement based on the basis of reasonable business purpose,it's reduce the cost,save time and increase the flexibility of business.To achieve the integration of resources and the purpose of risk diversification.Many scholars believe that private equity investment can inhibit the earnings management behavior of the management,but it will lead to more dispersed ownership,improve the cost of cooperation,reduce the ability to monitor the situation.So,what is the role of Syndicate in the company's earnings management,this paper takes the listed companies of GEM as the sample.Firstly,this paper studies the relationship between PE and earnings management.In this paper,we choose the representative GEM data to analyze the relationship between private equity investment and earnings management,and verify whether PE play a role here.Then,choose a series of internal characteristics of syndicate to explore the best way of the combination.Hope to provide a reference for China's private institutions.The empirical results show that there exist earnings management behaviors in companies that invest by Syndicate,compared to the two other ways.The higher the number of institutions,the higher the degree of earnings management.Nevertheless,we also can improve the situation by choose the better way.Specifically,we can increase the proportion of leading private equity and select a high reputation of the leading private equity,so put this negative effect to a minimum.Finally,I put forward some useful advice about my research.