Does The CSRC Effectively Recognize IPO Companies' Earnings Management Behavior?

The IPO approval system is an IPO audit mechanism with Chinese characteristics.Under this mechanism,IPO companies need to submit information disclosure documents to the CSRC for review.After a series of review processes,the CSRC approves that companies can list issued.IPO is often accompanied by earnings management behavior.Earnings management behavior can raise more funds for IPO companies to go public.However,the existence of earnings management behavior will affect the operation of the company in the later period.Therefore,it is not conducive to investors.The behavior of earnings management during the IPO audit process has been studied by many scholars at home and abroad.This paper will provide a new research idea and research method based on the previous work,as well as a new source of data – the feedbacks.This article draws on the research model of predecessors' earnings management,conducts research on the accrued earnings management behaviors and real earnings management behaviors of the IPO companies at the same time.And from the perspective of the regulators,I explores the current regulatory process,whether the China Securities Regulatory Commission can effectively identify the earnings management behavior of the IPO companies,and how such an audit procedure affects the earnings management behavior of the companies.After the research,it was found that under the existing auditing procedures,the feedback issue of the China Securities Regulatory Commission has no significant correlation with the IPO company's earnings management behavior,but instead it proposes a more inclusive feedback issue.Through the review method of the Securities Regulatory Commission,the IPO company will accordingly reduce its own accrued earnings management behavior and increase the real earnings management behavior,which is more difficult to detect.