Research On The Impact Of Venture Capital And Earnings Management In IPO Process To The Performance Of Listed Companies

In recent years,the relationship between venture capital and earnings management of the growth enterprise market has became a hot research issue.Some scholars found that many minor enterprises and technological innovation-based enterprises incline to list in GEM.In order to solve the financing dilemma and through the strict examination successfully,they may use earnings management to promote the quality of accounting information.VC as the unique participant,research found that it can play a role in promoting earnings management,but there are also some scholars consider that VC will inhibit the earnings management behavior,and VC in earnings management under IPO process in the enterprise will further affect financial performance.Research of the above problems will deepen the understanding of venture capital and earnings management,it can also provide some empirical evidences for those upcoming GEM companies.This article selects 333 companies listed on the GEM market from January 2011 to December 2015.Based on the unique industry characteristics of GEM,the innovation capability indexes are integrated into the comprehensive firm performance.According to the theoretical basis,we put forward the research hypotheses and establish multiple regression models to verify the role of VC in the process of listing and the impact of EM on corporate performance in the post-market under the background of VC.The research shows that VC effectively reduced earnings management of GEM companies in the year before IPO,and slightly promoted the level of earnings management in the year of IPO,while the participation of venture capital played a significant role in EM in the year after IPO.Research related to involvement of VC also show that the more stocks controlled by VC,the more level of earnings management will be reduced in the year before IPO,but it will significantly increase the behavior of EM in the year after listing.In the further analysis of the impact on corporate performance,we found that in the context of VC,the earnings management behavior of IPO in the previous year and in the same year will damage the post-market performance.