Research On Earnings Management Behavior And Countermeasures Of Company A

Through IPO,enterprises can achieve financing,improve governance structure,establish public image,increase market value and other goals,and finally realize long-term development strategy.Studies have shown that some enterprises have earnings management behavior in the IPO process.Excessive or improper earnings management will not only hinder the long-term development of enterprises,but also harm the interests of investors and other related parties.How to identify and standardize earnings management behavior of IPO process,improve the quality of earnings of IPO,keep the entrance gate of capital market,and promote the healthy development of capital market are the issues that enterprises,capital market regulators,third party audit and investors should think about.Gem is an important part of China’s multi-tiered capital market.From the pilot stock issue registration system of GEM in August 2020 to the official launch of the comprehensive registration system reform in February 2023,the quality of listed companies on GEM has gradually improved.Company A was listed in the GEM IPO in February 2018,and its performance fluctuated greatly after listing,so there is the possibility of IPO earnings management.Therefore,this paper selects Company A as the research object,analyzes its IPO earnings management behavior,and puts forward corresponding countermeasures from different perspectives in combination with the background of registration system reform.On the basis of expounding the relevant theories and combing the existing research,through the analysis of the current situation of Company A and the performance changes before and after IPO,the signs of IPO earnings management are preliminarily judged.Then,the modified Jones model and Roychowdhury model are used to measure the degree of accrued earnings management and real earnings management of Company A,and the earnings management behavior is further identified by combining the profit contribution rate of non-recurring gains and losses and the return on net assets,and the means,motivation and economic consequences of IPO earnings management of Company A are analyzed.Finally,the countermeasures to standardize IPO earnings management behavior are put forward from multiple levels.The main conclusions of this paper are as follows: firstly,compared with the same industry,Company A has a higher degree of accrued earnings management in the three years before IPO,while the real earnings management level is lower than the industry average;Secondly,the IPO earnings management of Company A is mainly about financing motivation and reducing the adverse effects of emergencies;Thirdly,the methods of IPO earnings management of Company A mainly include increasing the proportion of credit sales,reducing discretionary expenses,making use of non-recurring gains and losses,and disposing of holding subsidiaries.Fourth,IPO earnings management of Company A has achieved short-term seemingly favorable economic consequences,such as listing financing and raising the stock price,but it has also led to more negative long-term economic consequences,such as declining earnings quality,hindering sustainable development,harming the interests of investors and other interested parties,and being unfavorable to the healthy development of the capital market.Finally,we can standardize the IPO earnings management behavior of listed companies by improving corporate governance,making reasonable business plans,comprehensively deepening the reform of registration system,strengthening supervision,strengthening IPO audit,and improving investors’ ability to identify earnings management.