Research Of The Earnings Quality Of The Listed Companies In Growth Enterprises Market

The growth enterprises market of China officially launched in 2009.The launch of the GEM has a lot of benefits for the small enterprises.And it is also a good way to solve the problems of fanancing of these enterprises.According to the relevant provisions of the GEM,the listed companies must meet the various requirements before they can be listed on the GEM.For example,there are some restriction on the profitability and performance indicators of the listed companies.To be listed on the GEM,these companies take some meatures at the expense of constructing false economic matters,inflated profits and beautify the accounting statements.However,excessive earnings management has greatly affected the authenticity of accounting statements.And this effect is difficult to eliminate.The regulators and the enterprises' investors will be misled by the false accounting statements.These manners not only cause a set of serious economic losses,but also have a bad influence on the allocation of resources.For GEM companies,they may raise a lot of money in a short period of time.But in the long run,this is bound to affect the healthy development of the GEM.Most of the GEM companies have a sharp decline in operating performance after the successful listing.Regulators published some delisting regulations.Those companies with a sudden change in operating performance are facing the risk of delisting.This paper also makes an empirical study on the earnings management of companies before and after the introduction of the new deal.We choose a sample of A-share listed companies from 2010 to 2013,and study earnings quality of the companies listed on growth enterprises market(GEM)from perspectives of dynamic comparison under segment difference and time series by the way of multiple linear regression.And we try to analyze the ways of earnings management of the companies listed on the GEM before and after delisting rules.The findings show that earnings quality of companies listed on the GEM is lower than that ofthe companies listed on the main board and small board firstly.Secondly,the GEM has greater impact on the earnings of corporates.Thirdly,accrual-based earnings quality of GEM has been gradually improved.Fourth,after delisting rules,there are more real earnings management in the companies listed on the GEM.It is suggested that the earnings quality of GEM listed companies should be improved from the aspects of strengthening the audit of real earnings management of listed companies on GEM,increasing the punishment,listing standards and establishing the credit system.