The Effection Of New Accounting Standards On Earnings Management Of Listed Companies In The IPO Process

As China's stock market has its unique system background, compared to mature markets in developed countries, China's stock market appears serious market distortions. In order to achieve "money encirclement", when listed companies during the IPO, the Company management will has a strong incentive to use the earnings management to achieve their goals. This behavior was mainly due to information asymmetry and incompleteness of contracts between the company and the securities regulatory departments. Accounting standards and earnings management have the game relationship, and high-quality accounting standards can prevent the earnings management behavior of listed companies. In 2006, the Ministry of Finance issued new accounting standards, and basically achieved with the convergence of International Financial Reporting Standards. The new accounting standards consider the China special macro environment, and make some revise from the general criteria to specific criteria, then have affect earnings management s from several aspects. To some extent, the implementation of accounting standards is Conducive to limit the profits of listed companies, and order accounting practices, thus it will improve the transparency of accounting information. Therefore, we use the modified Jones model, and collect the financial data of 2004-2010, and then compared to the sample data under the both new and old criteria, we conclude that earnings management motivations of Listed companies in the IPO process is more obvious than non-IPO companies. We also prove that implementation of new accounting standards are conducive to curb earnings management of listed companies in the IPO process behavior.In this paper, we use both the empirical research and theoretical analysis, and use Eviews software for data processing. Paper is divided into six parts.The first part is the introduction. It introduces the research background and research motivation, and review research status at home and abroad, and then proposes research questions and innovation.The second parts are theoretical foundation and literature review. Learn the enterprise theory of earnings management. And we discusses the basic theory of earnings management, including its content, motive, means and economic consequences, and then summed up earnings management of listed companies in the IPO process at home and abroad.Finally, List the measurement model of earnings management.The third parts are theoretical analysis and hypotheses. This study elaborates the content and key issues, and demonstrates the theoretical basis.The fourth part is the study design. There are two main models. One is the regression model, using the modified Jones model to calculate the profits of enterprises accruals. One is the impact of IPO earnings management to consider the main factors, and tests the relationship of new standards and e Listed companies in the IPO process.The fifth parts are the empirical analysis and results of analysis. First, carry out sample selection, and then use the model for empirical analysis. We first investigate the differences on listed earnings management of listed companies in the IPO process under the old and the new guidelines under the IPO process the level of earnings management, and confirm the presence of earnings management of the listed companies in the IPO process. Second, compares the sample under new and old criterion to verify whether the implementation of new guidelines to curb the earnings management of Listed companies in the IPO process.Part sixths are conclusions and policy recommendations. This paper comes to conclude that that earnings management motivation of listed companies in the IPO process is more obvious than non-IPO companies. We also prove that implementation of new accounting standards are conducive to curb earnings management of listed companies in the IPO process behavior.