The Research Of The Influence Of China’s IPO Pricing System’s On The Earnings Management In Different Ownership Enterprises

In the IPO market, with the accounting earning as the core of accounting information is an important basis of investors judge the value of the company. Given the importance of the surplus information of value judgment, the companies have the motivation overestimate the surplus pre-IPO, overestimate surplus dependent on overestimated revenues, or rely on underestimate cost; But under accrual basis the overestimate of income inevitably leads to underestimate of future accounting income, thereby the performance of listed companies become really bad after IPO.In order to change the bad performance of new issues exposed in the process of IPO and prevent the resources allocation efficiency loss caused by the distortion of surplus information, The securities and futures commission in December2012assault launched<the notice regarding to inspection of the IPO company’s financial report>and the notice called " the most severe financial verification in the history".The intermediaries of IPO companies must submit the inspection report and the12key verifications to profit manipulation, the SFC will be approved in the inspection report focused on the basis of spot check. After the IPO financial verification, more than300companies withdraw the application, so the earning quality may exist problems in the process of IPO.Compared with companies in mature market economy, the basic characteristics of China’s economic transition and emerging market determines the marketing process is always accompanied by rapid institutional change, institutional factor has become the important factors that affect enterprise behavior, sometimes even the main environmental factors. This paper studies the influence of the changes in IPO pricing system on the earnings management in different ownership enterprises. The study finds that the opportunistic earnings management exists in both state-owned enterprises and non state-owned enterprises during IPO process. Compared with market pricing stage, the level of earnings management in the first enterprise is higher than that in administrative pricing stage. Meanwhile, it has been found that the change from administrative pricing to market pricing constrains the earnings management in both state-owned enterprises and non state-owned enterprises. However, the constraint effect on non state-owned enterprises is more obvious.