A Study On The Correlation Between Earning Forecast And Choice Preference In Earnings Management Methods For IPO Firms

IPO earnings management has been the focus of listing Corporation financial problems, This paper selects a new point of view,real earning management, to research the relationship between earning forecast and choice preference in earnings management methods for IPO firms, To explore whether IPO firms to cater to the profit forecast and the implementation of the earnings management behavior of non single and what kind of earnings management influence on the accuracy of earnings forecast is more obvious, The management of the company aim to achieve the expected earnings, whether or not they have a preference choice of the earnings management? This paper wills attempt to answer these questions through the combination of normative research and empirical test.This article can be divided into five chapters:the first chapter introduces the background of this article’s topic, the research significance, the main research content, the method, the thesis portal frame construction and the innovation points. The second chapter offers a brief review of Chinese and foreign literature. The third chapter offers theoretical elaboration. The forth chapter carried on an empirical test, the empirical study takes Shanghai and Shenzhen A-share market as research objects, processing their financial data from 2006 to 2013 with Excel and SPASS. The article defines proxy of the accuracy of earning forecast, accruals and real earnings management in this part, then constructs multiple regression models to study the relationship between the relevant variables. The last chapter puts forward the conclusion and some policy suggestions.The findings of this paper as follows:There is a significant correlation between IPO earnings forecast and earnings management mode choice.In the voluntary earnings forecast disclosure, to meet earnings forecast, IPO firms have instigated the non single earnings management, and compared to the accrual earnings management, Real earnings management has more significant effect on the accuracy of earning forecast. Further study found that IPO firm instigated real earnings management has a preference choice of production control mode. Therefore, this paper suggests to strengthening the supervision company IPO listed before and after the listing of the audit, at the same time, strengthening the research of real earnings management activities, and issuing the real activities earnings management disclosure measures and punishments as soon as possible.