Research On The Impact Of Venture Capital On Accrued Earnings Management Of GEM IPO Companies

In October 2009,China's Growth Enterprise Market was officially launched,providing a good financing platform for many high-growth SMEs.At the same time,it has also promoted the development of China's venture capital industry.More and more venture capital institutions have obtained investment returns by helping these companies achieve initial public offerings(IPO).Compared with listed companies on the Main Board,most of the companies that choose to list on the GEM are small and medium-sized enterprises with short set-up time and few management experience.Generally,there are financing problems.To be listed on the GEM,the listed companies must first provide.In the three-year financial data,in order to reach the listing threshold as soon as possible and obtain valuable listing opportunities,the GEM listed companies have the motive to beautify the earnings information in the financial report before the IPO.At the same time,previous scholars' research shows that Most of China's GEM listed companies have venture capital intervention.Unlike ordinary investors,when venture capital is used as an external organization to enter the invested company as an internal information person,it will usually become part of the corporate governance structure and participate to some extent.The management of the enterprise will have an impact on the preparatory work of the company in the early stage of listing.Then,will the participation of venture capital institutions improve the accounting information quality of the IPO of the GEM,and how it affects the management of the earnings of the IPO of the GEM? Issues worthy of attention and research.This paper takes the company listed on GEM in 2012-2017 as a research sample,and integrates relevant data.The manipulated accrual profit calculated by the modified Jones model represents the IPO accrued earnings management.The empirical analysis by SPSS23 is to IPO.As a variable to be explained,whether the IPO enterprise has venture capital investment,the shareholding ratio of the venture capital institution and the shareholding time,the reputation of the venture capital institution and whether it is a joint venture investment are taken as four explanatory variables.Five other control variables were explored to explore the impact of venture capital on the accrued earnings management of the GEM IPO.Through empirical research,the following conclusions can be drawn: First,the involvement of venture capital institutions can reduce the degree of IPO accrued earnings management;secondly,the proportion and timing of venture capital institutions shareholdings and time are negatively correlated with the IPO accrued earnings management level;again,venture capital institutions Reputation is negatively related to the degree of IPO accrued earnings management;in the end,joint venture capital investment can reduce the IPO accrued earnings management degree more than single venture capital.Finally,based on the results of empirical research and the current market situation,the following suggestions are proposed: improving the GEM market system;promoting the construction of a venture capital system;and improving the moral self-discipline of enterprises.