Empirical Study On The Earnings Management Issues Of GEM Listed Companies During The IPO Process

After ups and downs, Growth Enterprise Market that for innovative SMEs was finally launched in October 2010, make our country in the construction of multi-level capital market has taken a solid step. For the Growth Enterprise Market, whether like the mother board and Small Business Market faced with the already exists problem:Listed companies that during the IPO existing earnings management problems. This article will aim at this problem launched research.Large study shows, in the IPO process mother board and Small Business Market exist earnings management behavior, and Enterprise of earnings management behavior will not only damage their long-term interests, finally will affect the healthy development of the capital market. So for the Growth Enterprise Market, its healthy development for encourage and guide the social investment, support innovative enterprise development has important significance, it requires the joint efforts of the parties involved, In this context, this article selects Growth Enterprise Market IPO Company as the research objects; adopt normative research and empirical research, for the earnings management behavior of these listed companies carry on research.This article based on the theory and empirical aspect, combining the latest data, thorough discussion the earnings management behavior of the Growth Enterprise Market companies. First, from the angle of the theory introduced the theoretical background of the earnings management behavior, analysis the reason of earnings management, compared Growth Enterprise Market with mother market and Small Business Market in similarities and differences. By the way, analysis why the Growth Enterprise Market companies implements earnings management behavior and which means will they adopted. Second, from the angel of the empirical research, select 36 GEM companies that IPO in 2009, using the modified cash flow Jones model implement quantitative analysis. But by the end of this study, collect only 26 GEM companies of data; this may affect the credibility of the study conclusion.The article concludes the basic conclusion as follows:Through empirical test, we find modified Jones model has some defects in inspection earnings management behavior of GEM companies, modified cash flow Jones model has a better performance, the author finally chosen this model. Through the inspection we find that GEM companies have earnings management behavior through the accruals project. Meanwhile, verify the GEM companies in order to obtain an IPO qualification and make an IPO successfully completed, before the IPO the GEM companies exists positive earnings management motivation.