Venture Capital、Venture Capital Institutions Characteristics And Earnings Management

With the venture capital’s activity becoming more and more positive in the capital market of China, lots of scholars have begun to concern about the impact that venture capital exerting on the management of the objectives of investment after the venture capital as financial intermediaries entering invested enterprises. Earnings management is an important indicator of the quality of accounting information, which has always been a hot issue in accounting academic research. The pre-IPO companies have an incentive to manipulate the company’s earnings in order to achieve a successful listing. The venture capital, as an external agency, has become inside information holding person when entering into the company. After becoming a part of the governance structure of the invested company, whether the venture capital raises the quality of the accounting information in IPO company or not is very noteworthy.In this paper,2008-2012 Shenzhen Stock Exchange listed companies as samples of small plates, the integration of data collected by hand and Finance database data to correct Jones’ model calculations maneuverability accruals as observed variables, exploration venture capital, venture investments for institutional features a year before the IPO earnings management of listed companies affected.Empirical study concluded that:(1) Venture capital involvement did not have significant impact on IPO earnings management, the empirical results did not support the existence of its certification oversight role or "restless" situation. (2)The reputation of venture capital had no significant inhibitory effect on the company’s IPO earnings management. (3) The longer the venture capital’s holding period is, the lower the degree of earnings management of listed companies a year before the IPO is. (4)The higher the venture capital equity ratio is, the lower the degree of earnings management of listed companies a year before the IPO is. (5)The higher the venture capital equity ratio and the longer the venture capital’s holding period are, the lower the degree of earnings management of listed companies a year before the IPO is.This paper argues that the development of China’s venture capital is not mature, but also a good reputation incentives not coming into being, and thus in the process of venture capital’s investment, the venture capital institutions do not fully play its due role in providing value-added services, and the certification oversight on investments is not strong as well.