Research On IPO Earnings Management Behavior Of Hainan Mining Co.,Ltd

Since IPO restart in 2014,the performance of the first batch of new shares has been frequently "changed".Taking 2014 as an example,nearly 40% of the companies listed in the current year have seen a change in performance;50% of listed companies have seen a year-on-year decrease in profits after a year.These conditions show that over time,the phenomenon of "performance change" of such companies becomes more and more serious.However,under the premise that there is no significant change in accounting system,market environment,company size and corporate governance structure,the company performance has been so sharply reduced,which makes people doubt the rationality of the company’s performance and relevant indicators before IPO.And empirical research shows that earnings management behavior before IPO will have a great impact on the later operating performance and market response.Firstly,through the previous literature and review,the theory and research status of IPO earnings management are excavated;then,the anomaly after Hainan Mining’s IPO: performance change and long-term weakness of stock prices are analyzed,and it is judged that there may be earnings management behaviors during the IPO period.On the basis of judging the possibility of earnings management,this article measures the earnings management behavior of Hainan Mining from the perspective of accruals and true earnings management.The models used are the revised Jones model and the abnormal production and expense model.After the measurement,Hainan is found During the IPO period,the mining industry chose more accrual earnings management behavior.In order to make up for the limitation of applying the model to a single sample,it also introduced analysis based on the level of financial statements.Next,the motivation and specific path of Hainan Mining IPO earnings management are analyzed in detail.After discovering that the earnings management behavior during the IPO period will have a double effect on the company,on the basis of the above,the relevant suggestions and countermeasures are put forward based on the case of Hainan Mining IPO earnings management.The results are as follows:(1)there are earnings management behaviors in Hainan mining IPO,which is also the important reason for the performance change and long-term weakness of share price;(2)Hainan mining industry adopts a variety of purpose to manage earnings in IPO,although it has achieved multiple purposes of successful listing in the short term,but in the long time,the operation performance has been significantly reduced and small and medium-sized investors are damaged.(3)Investors can restrain earnings management behavior of the proposed IPO company by strengthening their attention to related projects,regulating the IPO companies themselves and taking more specific and detailed regulatory measures by the regulatory authorities.