Research On IPO Earnings Management Of JY Company

The sound development of capital market provides a good channel for enterprises,especially small and medium-sized enterprises,to direct financing.However,due to the late development of China's capital market and the imperfect market mechanism,the problems of capital market in the process of development continue.Over the years,some managers of listed companies often manage their own earnings based on certain motivations.Especially in the IPO market,the frequent phenomenon of "face-changing" of new stock performance also reflects the excessive manipulation of earnings by Listed Companies in the process of IPO.The performance change caused by earnings management of IPO enterprises not only brings losses to investors,but also affects the realization of resource allocation function of the capital market,and shakes the foundation of the development of China's capital market in the long run.This paper uses case analysis method to analyze the earnings management behavior of Jinyi Culture during its IPO period on the basis of combing the relevant theories of earnings management.In the process of case analysis,the adjusted Jones model is used to analyze the financial data of Jinyi Culture and to test its accrued earnings management level.Then,we use Cohen's method to measure the real activity earnings management of Jinyi Culture by abnormal operating cash flow,abnormal production cost and abnormal controllable cost.The test results of the two models show that Jinyi Culture Company manages earnings of accounting items and real activities in the process of IPO.After the empirical confirmation of Jinyi Culture's earnings management,this paper systematically analyses the specific behavior,motivation and means of the company's IPO earnings management.It concludes that obtaining better listing conditions and financing are the motivation of Jinyi Culture's IPO earnings management,and using key customers,manipulation costs and abnormal expansion are its main means of earnings management.On this basis,this paper puts forward some policy suggestions on restraining the behavior of IPO earnings management,such as improving the internal control system,strengthening market supervision,and improving accounting standards.