Empirical Study On The Earnings Management Issues Of China's A-share Listed Companies During The IPO Process

China's stock market witnessed serious market distortions. Many listed companies treated the stock market as an "ATM". Other companies manipulated their forecasted profit and financial statements in order to obtain the listing qualifications, or acquire a higher price on the initial public offerings (IPO), which has seriously damaged the basis of the integrity of our securities markets and misled investors. More over, the capital market is not conducive to optimizing the distribution of resources and ultimately hurt the entire market confidence and long-term development. In China, the problem for the A-share listed companies in the IPO process is the existence of earnings management, as well as the means of earnings management issues. The majority of the Institute's work is the description of the phenomenon, lacking of systematic and convincing empirical research. Therefore, this thesis studies the earnings management of the listed companies on the A-share IPO process, using empirical research and norms of combining research in the course of conducting in-depth discussions, as well as qualitative analysis and quantitative analysis of the means to carry out research, with a focus on empirical research and quantitative analysis.In this thesis, based on the research of both foreign and domestic scholars, studies the Shanghai and Shenzhen A-share IPO companies'earnings management through a combined theoretical and empirical analysis. This thesis also combines the China A-share IPO companies and the earnings management using the latest data. This thesis further applies the newly promulgated "Accounting Standards for Business Enterprises" to the company's IPO earnings management analysis, which has helped reveal the latest earnings management tools that the company in the IPO process may employ. In addition, this thesis comes to the conclusions which also have two innovations: the first conclusion is the application of Modified Jone's model on China's A-share market is limited, which attracted little attention before. The other innovation is that the earnings management of listed companies in different industries the year before and after the IPO has no significant difference, while previous studies had different conclusions. The theoretical analysis part includes the introduction of the content of IPO, the earnings management and the Jones Model. The empirical study part contains assumptions, description of statistical analysis, parameter testing of single-factor analysis of variance, correlation and multiple linear regression analysis.The basic conclusions of this thesis lie:â‘ there is a significant difference before and after the IPO in China's listed companies. The performance before the IPO is significantly different from that two consecutive years of IPO. The performance two years after the listing shows downward trend.â‘¡the application of modified Jones Model in China's A-share is limited. The author re-modified the model which proves to be more in line with China's securities market; so the re-modified model should be chosen. And at the same time proved that listed companies in the IPO process in the manipulation of accounts receivable.â‘¢listed companies in the IPO will be around through the accruals adjustments to the project earnings management.â‘£protection of national industry and non-industry protection in the IPO process between earnings management in essence, there is no difference. In recent years, these two types of earnings manipulation in the industry increasingly close.