Approval System And The Manipulation Of Ipo Profits - Based On The Shanghai Stock

China's stock market has developed greatly during the past over one decade, but with several problems accompanied like earning manipulation of IPO (Initial Public Offering). Based on the implementation of the System of Approval in China, and researched the manipulating behaviors by A shares companies during IPO procedure in China from 1998 to May 31, 2002, the thesis analyses the effect of implementation of regulations concerned with public issue to IPO.Based on the positive research, the thesis aims to the combination of positive research and normative research. Before our positive exam toward earnings manipulation of A-share offering companies, the paper firstly analyzes the reason of listed companies' earnings manipulation with information economics, and then specifically explain and strictly define the related but confused conception of earnings management and earnings manipulation. Through the actual analysis of selected 141 IPO companies with amended DEANGELO MODEL, there is no particular change in earnings manipulation during IPO procedure before and after the implement of approval system, that is, there is no obvious effect in supervision towards public offering companied. Finally, the author will submit the concerned suggestions after the normative analysis utilizing the institutional change theory.