Economic Consequences Of Earnings Management Behavior Of Private Placement More Case Studies

Private placement is becoming the main form of financing among domestic listed companies in recent years.Since earnings management generally exists in the process of private placement,many scholars have done a lot of research on it.Most of the research is on the specific practices and the adverse effects of earnings management with the purpose of issuing shares at a discount premium before private placement by listed companies.However,earnings management also exists after the issuance of private placement.The main reason of such earnings management is to cooperate with the private placement and the reduction of lifted shares of the major shareholders.Therefore,this thesis will make a further study on the earnings management of private placement by using the multiple case study method.The first section proposes the research background and significance.It mainly reviews the research literature of private placement and earnings management and put forward the research ideas and innovation.In the mean time,it also introduces the theory of private placement and earnings management and economic consequences.The second section sets up the theoretical model using time series analysis and logic modeling methods.At the same time,this thesis carries on the explanation to its correlation analysis unit as well.The third section introduces the background of the four relevant cases to gain the cases of financial reporting and stock data in the past few years before and after the issuance of restricted shares lifted.On this foundation,we can get a better understanding of the operation process of its private placement.Then the theoretical model will be used to analyze the financial and non-financial data.The forth section compares the 4 listed companies with cross case clustering analysis.By comparison,the major shareholders will be implemented in the private placement of restricted shares before the lifting of the ban on earnings management in order to maximize the sale of restricted shares to reduce earnings.Meanwhile,to achieve better results,so as to enhance the company's performance level in the short term,the major shareholders will also choose different earnings managements according to the specific circumstances of each company.In fact,such performance caused by earnings management is short-term and it may lead to the deterioration of the company's future financial indicators and the obvious decline as well.The last section draws the conclusion and prospect of this thesis by analyzing and comparing the effects of different ways of earnings management on the economic consequences of the issuance of listed companies.This thesis analyzes the impact on the company's financial statements and economic benefits of each critical period between the two years of the issuance of private placement to restricted shares after the lifting of the ban by using multiple case study method.Moreover,it also gives a systematic discussion about the economic consequences of earnings management before the issuance of restricted shares of 4 listed companies(CAMC.DFHL).It can also be helpful for the supervision departments to monitor the earnings management behavior of listed companies by providing a new perspective for the study of interest transfer of the major shareholders.I hope that we can also give a better protection for the interests of small investors according to this thesis.