A Research In The Relationship Between The Earnings Management And IPO Spread-Pricing

After American scholars Prescott and Mehra put forward "stock premiums problem", spread-pricing of new stocks, namely, premium and discount were aroused widespread interest in foreign scholars. They use different models to measure the rate of discount and premium, and made a large number of theory and empirical research, aiming to find out some reasons of new stocks spread-pricing and its influence factors. Chinese scholars, combining with the situation of our country, have also made the pertinent research analysis, obtained the conclusion achievements with Chinese characteristics. But now, there is no scholar who researched the relationship of earnings management and spread-pricing. Because Chinese securities capital market efficiency is weak, and information asymmetry is serious, the existence of great degree earnings management is probably. Therefore, this paper is trying to compensate for this shortage, research the relationship of earnings management and IPO spread-pricing by theory and empirical two angles.During the research, in order to make conclusion more convincing, this paper firstly test pre-IPO earnings management degree by empirical method. In the basic of significantly exist of high earnings management, this paper began to research its main theme, using multiple linear regression model to examine the relationship of earnings management and IPO spread-pricing, controlling the issue size, the person nature, and underwriters reputation and so on. Finally, the conclusion is: the relationship of pre-IPO earnings management and spread-pricing is significantly positive. Because the spread-pricing includes two factors, premium and discount, the sensitivity analysis will be refined, and the conclusions are according with above conclusion.In order to meeting the needs of research, this paper selects initial public offering of the A-share listed companies during the year 2007 to 2009 as the samples. This paper chose those years is considering the CSRC in September 2006 a new package files to perfect the system for issuing. The choice of sample reflects the current situations truthfully, having stronger representative, and the latest conclusion evidence. Finally, according to the conclusion, some suggestions were given to improve market conditions.