Research On The Influence Of The Withdrawal System On The Earnings Management Of Listed Companies

Growth Enterprises Market Board of China opens officially on October 30, 2009,after that, the GEM will grow rapidly. Meanwhile, because the system is imperfect,then appeared "three high", the emergence of a large number of venture capital,inefficient use of over-raised funds, performance degradation and other issues,and the GEM delisting system immediately introduced. Finally the guide of these problems points to a problem in the capital market which has always been there-- earnings management. Before delisting system introduced, scholars studied the earnings management behavior which GEM companies carried out in their listing process.They obtained the relevant conclusions about earnings management on IPO pricing and the performance of the companies listed. After delisting system introduced,scholars have reduced the research on earnings management, and no scholar researches effect of delisting system impact on earnings management behavior. Then,after the delisting system introduced, does the earnings management way change? For listed companies in different industries, what is the difference of their earnings management way and extent? It is the main content that this paper is to study.Therefore, this article combs the motivation of earnings management, earnings management research methods and delisting system efficiency by reading relevant literature regarding delisting system and earnings management, then analyses earnings management and delisting system in theory. By using STATA11.0, from the perspective of real earnings management and accrued earnings management, I verify the hypothesis of this paper one by one: Delisting system has an effect on accrued earnings management; Delisting system would affect the real earnings management well; For listed companies in different industries, what is the difference of their earnings management way.Finally, conclusions are drawn:(1) Before the introduction of the GEM delisting system, in order to raise adequate fundings and attain other purposes, listed companies mainly implemented accrued earnings management at lower cost.(2)After the introduction of delisting system, in order to avoid suspending or terminating the listing which resulted from losses and under the circumstances where delisting supervision system is more rigorous than the previous, listed companies choose toimplement more subtle real earnings management.(3) In different sectors, the effects which delisting system has on listed companies who choose different earnings management ways are also different. Specifically, after the delisting system introduced, assets of listed companies choose to manipulate sales and production cost;Technical of listed companies manipulate sales and costs; Service and culture of listed companies will choose the sales approach, research and development of listed companies choose to control the production cost means.