Research On The Guiding Role Of Secondary Public Offering Regulation Policies To Earnings Management

The healthy and orderly development of Chinese refinancing market cannot be separated from the supervision of the policy system,but the reality is contrary to its original intention.These regulatory systems,which are aimed at screening high-quality companies and standardizing the refinancing behavior of listed companies,have also become one of the motivations for adjusting profits and whitewashing finances report.Secondary public offering is one of the main ways of equity refinancing,but from the perspective of national policy supervision,research on the relationship between earnings management practices and regulatory policies of listed companies is still rare,and these research findings are also widespread lack of systemicity.Therefore,this thesis uses the post-management earnings distribution method,multivariate regression analysis,and comparative experiments as the research methods,and uses related regulatory policies as explanatory variables to explore whether listed companies have accrual earnings management or real earnings management during public issuance.As well as whether or not the supervisory policy has a guiding role in the two types of behaviors,and then we propose targeted earnings management governance recommendations.Specifically,on the basis of reviewing the domestic and foreign earnings management measurement methods,earnings management methods,and the research status of equity refinancing earnings management,this thesis defines the concept of earnings management,analyzes the definition,classification of stock issuance,and motivation of earnings management,and summarizes the influence factors of earnings management.It has clarified the development of Chinese issuance of regulatory policies and performance threshold requirements.We design an empirical analysis program based on the normative research.Taking the secondary public offerings listed companies from 2003-2006 and 2009-2014 as samples,we draw a histogram of earnings distribution via earnings distribution analysis method,and the sample company's earnings characteristics are visually observed.The modified Jones model and Roychowdury's method are used to measure the accrual earnings management and real earnings management in the first three years of the issuance period and in the issuance year of experimental group and control group,during 2003-2006 and 2009-2014.We set the earnings management index as an explanatory variable,sets dummy variables according to the rate on equity and serves as an alternative variable to policy performance requirements,and then establish models.The fixed-effect model is used to conduct regression analysis to the accrual earnings management and real earnings management.What's more,comparative study method is used to further verify the guiding role of the supervisory policy to earnings management of secondary public offering listed companies.At the end of the article,suggestions were made in terms of multidimensional supervision policies,third-party assistance,corporate governance,and motivation for earnings management.We find that secondary public offering listed companies have adopted both accrual earnings management and real earnings management during the period of application of the two policies.The effect of regulatory policies on the earnings management behavior varies according to different performance thresholds.High performance threshold policies have an inhibitory effect on earnings management,while low performance threshold policies promote earnings management.With the improvement of accounting policies and the development of capital markets,secondary public offering listed companies are more cautious about earnings management behavior.The innovativeness of this thesis is mainly reflected in the following points: most of the previous studies only focus on one type of earnings management behavior,this thesis includes accrual earnings management and real earnings management that may exist during the secondary public offering.We use the method of post-management earnings distribution,multiple regression analysis and comparison experiments,the earnings distribution method can intuitively present the differences of the earnings distribution under different regulatory policies.The regression analysis method was used to examine the correlation between accrual /real earnings management and policy variables.Further,a comparison experiment study was used to verify the possible causal relationship between policy variables and the two earnings management behaviors.Thus,in the statistical sense,the former guides the latter.