Research On The Duration Of Private Equity Investment,IPO Earnings Management And Performance Sustainability

With the constantly emerging of the innovative start-ups and private equity investment fund,the perfection of related policies and regulations,as a service to the backbone innovative start-ups private-equity market rapid rise,the resource of deep under the support of private equity investment institutions,a large number of innovative start-ups grow quickly,for many traditional industries have a strong impact,also created a new business model,but also effectively promote the development of science and technology,enhance the economic vitality.Private equity investment fund managers as entrusted with the general partner in a limited partner in project investment and management,the ultimate goal is to exit the portfolio companies and obtain benefits,IPO due to exit with high return,tend to be the first choice of the private equity investment institutions to exit the program.In the current China's private equity market development is not yet perfect,once formed is given priority to with pre-ipo investment pattern of private equity investment institutions assault in front of the listed companies to buy into,auxiliary to the listed company through public audit and get high returns after exit,but the earnings management in listed at the beginning of the enterprise performance is often poor follow-up,private equity investment institutions of speculation disturbed the market order,to a information disadvantage of small and medium-sized investors benefit loss,the use of asymmetric information for short-term profiteering behavior is not conducive to the improvement of capital market efficiency and quality.Listing plans to listed companies in China to meet regulatory requirements or get a higher issue price,often in front of the public on positive earnings management in order to enhance performance,and the performance after the listing is declining.And private equity investment institutions of investment for the perfection of corporate governance structure and the role of the supervision of information disclosure will make enterprises IPO pricing more reasonable,and the long-term holdings of private equity investment institutions focus more on the future growth of the enterprise.Based on the above facts,this paper mainly studies private equity investment institutions holding period to be listed companies IPO accrued the degree of earnings management and the influence of subsequent performance,and verify the accrued earnings management in the private equity investment holding period of follow-up(or play a mediating role in the influence of the performance.This article selects the period 2002-2017 in China's main board,2004-2017 period in small and medium-sized plate,and the period 2009-2017 in the gem ipo companies as samples,to private equity investment institutions holding period for key variables,examine whether the long-term holdings of private equity investment institutions can better play to the supervisory function of the certification.The results show that the weaker earnings management of the listed companies before the ipo,the better performance of the enterprises after the listing,and the negative correlation between earnings management and performance sustainability.And private equity investment institutions holding period and is negatively related to listed companies earnings management and show that long-term holdings of private equity investment institutions can play a role of certification supervision,strengthen the public enterprise information transparency;Long-term holdings of private equity investment institutions but also benefits the sustainability performance of listed companies,and the inhibition of earnings management has played a part in this intermediary role,namely long-term holdings of private equity investment institutions can restrain earnings management behavior of listed companies,accordingly promote the listed company's performance after the public offering.For different holding period of private equity investment institutions play a role in the process of IPO,in this paper,from the private equity market specialization,specification of fund managers,as well as introduce long-term institutional money three aspects put forward some Suggestions,in hopes of the benign development of China's private equity market has a certain reference value,so that the private equity investment institutions better contributing to China's economic transformation and upgrading of the structure of power.