An Empirical Research Of Earnings Management Based On Equity Refinancing

Earnings management as a financial reveal a hot issue has become the focus of attention. Because of the special nature of the market environment, equity refinancing the company after the listing of an important way to obtain follow-up funding, resources are relatively scarce in capital cases, the listed companies to raise more funds and engaged in a fierce competition. In order to protect the interests of investors and improve resource allocation efficiency, the securities regulatory authorities on the qualifications and conditions for refinancing to make a strict restrictions, which are induced to some extent through the earnings management of listed companies to meet policy requirements. Therefore, the listed companies before making equity refinancing, its authenticity is questionable earnings reports, specifically the behavior of earnings management research is very necessary.This paper summarizes recent studies on the basis, starting with basic theory, introduced the concept of earnings management, basic characteristics, causes and common means, and the theory of equity refinancing. On this basis, analysis of equity refinancing in the present situation in China, reviewed the history of the evolution of relevant policies. In the empirical analysis to 2009 for equity refinancing of listed companies as the research object, select 74 listed companies of the sample, and for each company selected a control sample of companies controlled by two-sample comparison of descriptive statistics And the sample mean T tests confirmed that the sample companies conducting equity offerings before the existence of upward earnings management. Using Modified Jones Model Management prove a surplus mainly through the manipulation of accruals to achieve, the final regression model through the specific means of earnings management conducted a comprehensive analysis, the results of assets, depreciation, amortization and other recurring accruals; Provision for asset impairment; operating income and other non-recurring gains and losses are the main source of increase in total profit. In the last, for the refinancing of listed companies in the process of equity earnings management issues, the specific situation in our country, made targeted recommendations.