Performance Change and Its Influence Factors in IPO- An Empirical Study on China Growth Enterprise Market

Xi Zhao, Ying-Jun Sun


This paper examines the relationship between pre-IPO earnings management and post-IPO performance under the background of venture capital investment which using a sample of 148 IPO companies in China GEM market during 2009 and 2010.The Empirical research indicates that venture capital investment plays a positive role on GEM listed company with short-term and long-term. The pre-IPO earnings management has certain predictability in the results of operations on the post-IPO. The positive earnings management of pre-IPO will result in declining about operation of post-IPO. The greater of the extent about positive earnings management of pre-IPO, the greater in the operations results of post-IPO decline.


GEM; IPO; Venture capital investment; Earnings management; Market performance

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