A Case Study On Real Earnings Management Of Private Enterprises IPO On ChiNext

Chinext was officially opened on the Shenzhen Stock Exchange on October 30,2009,mainly to provide a financing platform for enterprises with "two highs and six new".The emergence of the Chi Next market not only optimizes the structure of our country’s multi-level capital market,but also improves the financing difficulties of small and medium-sized private enterprises in our country to a certain extent.The Chi Next market has won the favor of many small and medium-sized private enterprises due to its lower listing threshold than the main board market.Some enterprises use earnings management methods to manipulate the performance during the IPO in order to complete the IPO listing plan as soon as possible,causing huge losses to the company itself and its investors.Earnings management can be subdivided into accrual earnings management and real earnings management.Under the circumstance that the previous accounting system and market issuance supervision system were not perfect,small and medium-sized private enterprises mostly used accrual earnings management during the IPO period.With the continuous improvement of accounting standards and regulatory systems,the room for accrual earnings management has become more and more narrow,resulting in small and medium-sized private enterprises planning to IPO gradually favoring the use of real earnings management related to real business activities for performance manipulation to obtain GEM listings Eligibility and higher issue price.In the existing real earnings management research literature,domestic and foreign scholars have made a series of research results in the means,motivation and economic consequences of real earnings management,which have laid a certain foundation for the research of this thesis.However,the existing research is mainly based on large-scale empirical research,and there is relatively little research on the real earnings management behavior of a specific subject.The real earnings management behavior of enterprises is generally greatly affected by the industry and institutional environment.All have their particularities,which provide a certain space for case studies.Based on this,this thesis selects Yuebo Power,a private enterprise that adopted real earnings management behavior during the IPO period and successfully listed on the Growth Enterprise Market as the research object,and analyzes the motivation,means and economic consequences of Yuebo Power’s real earnings management during the IPO period.The purpose of this thesis is to reveal the adverse effects of real earnings management during the IPO period,so as to serve as a warning to other companies planning to IPO,and to provide reference and reference for relevant entities to restrain real earnings management behavior.This thesis adopts the normative research method and case study method.First,it sorts out,summarizes and summarizes the research literature on real earnings management at home and abroad,and understands the general motivation,means and economic consequences of real earnings management behavior;Yuebo Power of Earnings Management as the research object,constructs the Roy Chowdhury model to measure the degree of Yuebo Power’ real earnings management behavior,and collects financial data and non-financial data to expand and analyze the methods of Yuebo Power’ real earnings management.Stakeholders set out to explore the economic consequences of the real earnings management behavior of Yuebo Power IPO,draw relevant conclusions and put forward some suggestions for listed companies and relevant regulatory authorities.The main research content of this thesis is divided into the following four parts:The first part is the theoretical analysis part,which further expounds the research background and significance from the reform of China’s capital market and the IPO status of private enterprises on GEM.At the same time,the motivation,means and economic consequences of real earnings management of enterprises are reviewed and reviewed,and the research ideas of this thesis are further formulated.Then it expounds the concept and types of earnings management,summarizes the general motivation,means,measurement methods and related theories of real earnings management,and lays a foundation for case analysis.The second part is the case introduction part.This part briefly introduces the basic situation,financial situation and IPO process of Yuebo Power during the IPO,and combines the performance standards and issuance pricing characteristics of country’s GEM to obtain the real earnings of Yuebo Power.Management’s motivation is mainly to meet the IPO performance standards and increase the company’s stock issue price.The third part is the case analysis part,which identifies and measures the real earnings management behavior of Yuebo Power during the IPO period,and conducts an in-depth analysis of its real earnings management methods and economic consequences;The real earnings management of Power has been identified and measured,and then the Yuebo Power has been given large credit sales to develop new customers,relaxed customer credit policies to increase revenue,reduced discretionary expenses to optimize performance,and adjusted nonrecurring gains and losses to smooth profits.Real earnings management methods are expanded and analyzed;finally,the impact of real earnings management on the company itself,the securities market,investors and other stakeholders is analyzed and evaluated from three aspects:financial status,corporate governance,and external environment.The fourth part is the conclusion and suggestion of the case.Based on the above analysis,this thesis finds that the motive of Yuebo Power’s real earnings management is mainly for the successful listing.During the IPO period,a variety of real earnings management methods were used,but the real earnings of Yuebo Power during the IPO period The management behavior has paved the way for the "face change" of its performance after its listing,and it has also caused losses to the company’s shareholders’ wealth;based on this,this thesis proposes to improve the level of corporate governance,improve our country’s accounting standards and related regulations,and strengthen the real earnings management companies.Suggestions on auditing efforts,strengthening the supervision of the IPO practice quality of sponsors,and improving the follow-up investment mechanism of sponsors for IPO companies on the Chi Next Board,etc.,to deal with the real earnings management behavior of enterprises.