Research On IPO Earnings Management Of L Company

Research on the securities market shows that some companies maximize their own interests during the initial public offering(IPO),company managers tend to beautify the company's financial data through earnings management.and meet the IPO standards and requirements of the regulatory agencies in a short period of time.And it turns out,on the one hand,earnings management activities will distort the company's true operating conditions and cause losses to stakeholders,on the other hand,low-quality accounting information will reduce the efficiency of market resource allocation and affect the healthy development of the capital market.This paper takes L company as an example,On the basis of defining the basic concepts of earnings management and combing related theories,the company's abnormal financial indicators are analyzed from three perspectives: profitability,growth capacity,and operating capacity.This paper uses the data of 75 samples from 15 enterprises in the same industry as L company,and uses the modified Jones model and Cohen model to conduct an empirical analysis of L company's accrued earnings management behavior and real activity earnings management behavior.The analysis shows that Company L conducted accrued earnings management activities and real earnings management activities before and after the IPO.The analysis shows that Company L conducted accrued earnings management activities and real earnings management activities before and after the IPO.On this basis,this paper summarizes the listing motivation,financing motivation and reward motivation of L company's pre-IPO earnings management;it specifically analyzes its specific surplus management methods such as related party transactions,receivable items,management fees and government subsidies;the objective reasons for the company's earnings management are analyzed,such as imperfect internal control of the company,asymmetry in accounting information and unfavorable external supervision.Finally,the thesis puts forward policy recommendations such as strengthening the internal control system of the enterprise,strengthening the supervision and management of information disclosure of listed companies,and improving the quality of external audits.