| Due to especial institutional background in Chinese security market, the stock market has been seriously distorted compared with developed countries, which is no the rusult of market economy evolopment. For the sake of "can finance"and "finance more",administrations in IPO firms manage their earnings by use information asymmetry with supervisor and imperfection in contracts. It is assumed that earnings performance of Chinese firms in A-share market may have some new character. This thesis researches Chinese firms' A-share IPOs, also proposes some suggestion about building up the securities business in our country.The paper reseaches the earnings performance surrounding Chinese firms' A-share IPOs during the 2003 period. It analyzes the sample through statistical way and hypothesis tests which discuss the mechanism and the way that lead to earnings management in A-share IPO firms. Then, some improvement has been put forward including rule of law, accounting standard and accounting system, auditing etc.The conclusion can be arrived as followed: firstly, it is found that during the examined period, A-share firms' adjusted ROA peaks before IPO, then falls year by year. Secondly, the enhancement of earnings before IPO is the main reason for the difference in the followed years. Finally, some suggestions in policy are proposed on how to take on regulation on earnings management in IPO firms in order to stimulate the healthy development of capital market in our country such as improve the criteria in IPO firms and enhance the cost of violation rule of law etc. |
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