Effect Of GEM Listed Companies In IPO Process The Earnings Management On The Performance Of The Company Changes

Earnings management is widespread in the listing Corporation, is an important economic phenomenon research in the field of financial accounting in our country, which directly influences the accuracy of accounting data in the financial statements, have an impact on the efficiency of the allocation of assets, and this phenomenon is not easy to eliminate. The domestic and foreign research on earnings management mainly concentrated in the main board and the small board, on the gem are more concentrated in the earnings management motive, means and methods, this one angle less from the relationship between the extent of earnings management and firm performance were investigated, but found the effects of different means of earnings management of the company the performance is different.It is lack of research on this issue, attracted the author as the research object, the accrual earnings management and real earnings management in contrast, respectively to study its existence in the gem IPO, and investigate its impact on the performance of the company respectively. The study found, the GEM companies in order to achieve the listing standards, in the market before and after the may use the accrual earnings management and real earnings management means to whitewash the profits of the company. Should the actual surplus earnings management does not change, only is the distribution and reaction changes earnings during different cross level, should the rotary characteristics of the project determines the company managers can’t use without limit accrual earnings management means to adjust the company’s earnings. Relatively, the real earnings management is through the internal economic activities to change the company to whitewash the real performance of a company, is mainly realized by the production control, cost control and sales control three ways. In addition, we should control the earnings management of price and production of real business relatively real earnings management is more likely to cause the audit department and the supervision department of the notice,the increased litigation risk management, real earnings management through the enterprise’s economic activities, which means more hidden, management level of audit risk may induce the cost high but less risky real earnings management.IPO listed before and after the change of corporate performance and its influencing factors, in twentieth Century after90years to become one of the hot issues of concern of accounting, economics research field, research on the problems of domestic and foreign scholars have made many research achievements. Research on China’s main board market before and after the small and medium-sized market listing Corporation IPO listed on the performance change of most scholars found: listing Corporation after the listing of the company performance has not been improved, but the obvious decline, there is IPO effect. Whether in China’s GEM companies also have a IPO effect, in this paper, the GEM market as the starting point, this paper attempts to combine the present stage of China’s securities market where the economic environment, select the representative financial index, using the method of empirical analysis to establish a comprehensive financial index system to test sample data, the study found the rate of return on net assets,rate of return on total assets, sales net interest rate of three indicators have a certain degree of decline in company IPO, and through a significant test, that also exists in China’s gem in the IPO effect, listed in the company’s performance will significantly decline.Earnings management is the purpose of the real performance in order to fuzzy company, the accrual earnings management and real earnings management purposes is here, but the degree of influence both on the company’s future performance is different. Whether listed before or after the listing, real earnings management degree were significantly higher than the accrual earnings management degree. Do pioneer work board the company earnings management at the same time, using two methods, were positive by earnings management of listed before, after the listing is used in negative earnings management to, from the analysis of data can be seen, real earnings management both in positive earnings management prior to listing also is listed in the management to the surplus profits after regression negative, are higher than the accrual earnings management. The main reasons for the above situation is accrual earnings management mainly affect the accounting profit is distribution in each accounting period, not in the whole life cycle of the impact on the total profit of the firm, but the real earnings management impact on operating cash flows and current gain, this effect is permanent, will damage to the company’s overall value. In addition, our research has discovered, there should be a positive relationship between earnings management and Future Ltd performance, and there is significant negative correlation between real earnings management and the company’s future performance, relatively, although two kinds of means of earnings management will make the company’s future performance decline, but the real impact of earnings management on the performance of the company’s more profound.The model is the Jones model and modified Roychowdhury model, to estimate the accrual earnings management and real earnings management respectively, and on the basis of the Roychowdhury model by using the method of Cohen to design the real earnings management indicators measuring the overall level of. The main reason for this choice of the two model is that it is the best estimate of the effect of earnings management, representative.