Research On IPO Earnings Management Based On Equity Characteristics And Underwriter's Reputation

At present,China's IPO threshold is high and the audit is strict.Many enterprises will conduct earnings management behaviors in order to win IPO opportunities,which has aroused wide concern in the academic circle.and more and more scholars have found that the earnings management of the IPO can beautify the financial statements and manipulate the information of the enterprises.It is also detrimental to the long-term development of China's capital market.In view of this situation,from the impact of the IPO earnings management factors began to study.From the point of view of corporate internal governance,the degree of equity concentration and the degree of equity checks and balances as the important content of corporate equity characteristics,play an important role in corporate governance,different equity characteristics determine the corporate governance and business performance,so it is one of the factors that influence the management of earnings of IPO.The underwriters play an important role in the process of the IPO,which can improve the asymmetric information of the stakeholders,alleviate the cost of agency,underwriters have different reputation and influence on earnings management.In this paper,by adopting the combination of theoretical research and empirical research methods,theoretical part,first of all,the analysis of the existing literature and then according to the information asymmetry theory,principal-agent theory and the intermediary supervision hypothesis theory analysis of the ownership concentration and equity balance degree and the influence of underwriter reputation for IPO earnings management,put forward in this paper,the research hypothesis;Empirical part through the analysis of 2014-2016 data of a-share initial public offering enterprises in our country,establish regression model and the characteristic of equity underwriter reputation affects IPO earnings management empirical research;Study the following conclusions:(1)the ownership concentration and IPO earnings management into significant positive correlation,indicate that the higher percentage of the first largest shareholder of listed enterprises in our country,big shareholders by manipulating profit in the process of IPO earnings management motivation is obvious;(2)the equity balance degree and IPO earnings management into a significant negative correlation,that at present our country enterprise in addition to the first big shareholders of the top five shareholders' shareholding has increased,to a certain extent,checks and balanceson the first big shareholder,for our country enterprise is used for reference in perfecting equity characteristics;(3)good reputation underwriters can inhibit the IPO earnings management behavior;Then build the control model studies equity characteristics together with the underwriter reputation influence on IPO earnings management,(4)the ownership concentration and underwriter reputation on IPO earnings management into significant positive correlation,although good underwriter reputation can be suppressed to some extent to the first big shareholders to IPO earnings management of manipulation,but due to the large shareholders control in the enterprise,makes the adjustment on each other still exist after the IPO earnings management behavior;(5)the equity balance degree and underwriter reputation mutual influence on IPO earnings management into negative correlation,but not,significantly,to show that the IPO companies listed in the process of the internal governance and external supervision is still not very good.Finally,according to the empirical conclusions and problems found in the perfection of Chinese IPO earnings management governance countermeasure Suggestions.In this paper,the study of factors affecting IPO earnings management,the innovative enterprise internal characteristics and external equity underwriter reputation influence on IPO earnings management,combining research deepened the influence factor of IPO earnings management research.For IPO earnings management governance in our country put forward the following Suggestions:(1)establish an effective equity checks and balances mechanism,optimize enterprise shareholding structure;(2)strengthening the lead underwriters sponsor supervision responsibility;(3)improve the internal management and external supervision mechanism of coordinating role;(4)to perfect the market regulation;(5)strengthen the investors legal protection system and cultivating rational investors.