Research On The Impact Of Venture Capital Institutions Participate In The Gem IPO Earnings Management

As China’s economy has entered a new norm, technological innovation increasingly important role in promoting economic development in the country under a strong proponent of public business, the highly innovative background, a large number of innovation-driven companies have sprung up, for the economic and social development into the new vitality. GEM as China’s emerging market, since its inception in October 2009, as a large number of good growth, highlighting the technological innovation capability of SMEs to financing development provides a good platform, but also for the domestic venture capital provides a good exit channel, so more and more venture capital to assist them in choosing high-growth companies in the GEM market initial public offering(IPO) in the form of realized capital appreciation, and get good returns on investment. Studies have shown that, in order to obtain valuable qualifications listed, IPO corporate earnings management behavior prevails, so that people can not help asking, as a third-party external investment, venture capital firms manage their earnings in the GEM IPO process What kind of role play? Certification oversight role is positive, or negative effects of waves? The impact of the process, what factors will interfere subject to? To clarify these issues for the countries to develop relevant policies, the rational allocation of resources to promote long-term development of the venture capital industry and the GEM market, to achieve public business, Peoples innovative national strategic objectives is essential.Based on the relevant literature and research results were reviewed and summarized on the use of empirical research methods to explore the impact of venture capital institutions involved in the GEM IPO earnings management, text is divided into five parts, as follows. The first chapter is an introduction. Introduces the research background and significance of the research, and research ideas, methods and content, based on this review and sort the relevant literature and theoretical results at home and abroad, in the full draw based on the results of previous studies, this study to find out entry point. The second chapter is the theoretical basis associated with the internal mechanism of analysis. Elaborate venture capital institutions involved in the path and way affect IPO earnings management, to provide appropriate support for the theoretical empirical study, and then put forward hypotheses. The third chapter is the empirical research design. The article described the sample selection and data sources for the independent variable, the dependent variable and control variables to design and build the appropriate model. The fourth chapter is empirical testing and results analysis, hypothesis proposed empirical test and analysis and interpretation. The fifth chapter is conclusions and policy recommendations. According to empirical findings of the foregoing, we draw final conclusions of the study, and on this basis, make relevant policy implications.The research shows that, in the given conditions, there is no risk investment relative to the background of the company, have a lower risk of investment in the company’s IPO earnings management process; at the same time, we also found that the higher the reputation of venture capital, the company’s IPO Earnings management degree is smaller; lower joint venture companies than a single investment enterprises IPO earnings management. This paper argues that, based on the above findings, should be vigorously promoted participation on the GEM IPO market risk investment institutions, to encourage joint venture, and to establish the appropriate evaluation mechanisms reputation risk investment institutions.