Empirical Study On Factors Affecting The Quality Of Earnings Forecast And Earnings Management Under Earnings Forecast--IPO Perspective

With the development and improvement of the stock market,information plays an increasingly important role in it.Voluntary disclosure,an effective supplement to mandatory disclosure,is also playing a more and more important role,as in reducing the degree of information asymmetry,improving the transparency of information,improving the level of information disclosure of listed companies,promoting the optimal allocation of resources,and improving the efficiency of capital markets.In our country at this stage,it is to the decision of IPO companies to disclose earnings forecast.For the investors, earnings forecast is important when it comes to evaluate the company's potential profitability correctly and to make a rational economic decision;as to the IPO companies itself,the voluntary disclosure of the earnings forecast information is an effective way to pass on the company's future profitability potential to the investors,signaling the management's confidence in the future prospects or their ability to make a sound decision so as to earn a bright future,from this point of view,the voluntary disclosure of the earnings forecast information can reduce financing costs.For the entire stock market and the social welfare,earnings forecast information helps reduce the social transaction costs, improve stock market efficiency,and promote the development of market economy.By empirical study on issues related to the voluntary disclosure of the earnings forecast information,this paper finds out that when the IPO companies have the right to decide whether to disclose the earnings forecast information,less and less IPO companies are willing to disclose this information in their prospectus.At the same time,there's no evidence that those companies which disclose earnings forecast information in their prospectus will manage their earnings so as to meet the forecasted earnings followings the IPO year.Convinced that the accuracy of profit forecasts has not been modified,this paper does an empirical test to examine the factors affecting the accuracy of earnings forecast information and finds that accuracy of earnings forecast information are negatively related to PPV,FHOR and ECON at the significance level of 1%,and related to INDUSTRY at the significance level of 5%.Finally,there's no evidence that accuracy of earnings forecast information are related to ROE,FLEV,IND,HERF,and AUDITOR.