Research On The Relationship Between Venture Capital, Real Earnings Management And Corporate R&D Investment

Earnings management has always been one of the hot reasear topic of the capital markets.The domestic and foreign scholars have studied the earnings management behavior of listed companies and found that in order to achieve the IPO qualification and raising the IPO price,enterprises will implement the earnings management,including the accrued earnings management and the real earnings management.However,scholars at home and abroad usually conducted research and analysis on earnings management in the past from the perspective of accrual earnings management,and less discussed the real earnings management behaviors of enterprises.As the national capital market,accounting standards and the continuous improvement of the legal system,more and more scholars' study found that,not only accrual earnings management of listed companies was implemented,but they may also implement the real earnings management to achieve the IPO earnings threshold.Existing studies have found that there are some certain differences between the real earnings management and the accrual earnings management of there impacts on corporate value and performance.Although the actual earnings management faces legal and audit risk lower than the accrued earnings management,but their impact on the company's long-term value than that on which the accrued earnings management have is much larger,and the enterprises tend to choose cut down R&D spending to carry out the real earnings management.Based on the view of enterprises' R&D spending,this paper takes the GEM enterprise from 2010 to 2016 as the research sample,and examines the relationship between the real earnings management,VC and the R&D investment.The research shows that :(1).The participation of VC does not reduce the real earnings management level of the enterprise,but may help the enterprise carry out the real earnings management out from �the Grandstanding hypothesis�;(2).The entry of VC can significantly improve the R&D investment of the enterprise;(3).The entry of VC has significantly reduced the real earnings management of enterprises through the reduction of R&D investment,instead,they have adopted other ways to manage the real earnings management.At last,this paper puts forward some Suggestions for the development of China's capital market and venture capital industry.