There is severe information asymmetry between the investors and the issuers for initial public offerings. Hence, the argument on that pre-IPOs earnings management conveys information or noise is continuous. Taking the first and the second moment of earning distribution into consideration, this study classifies earnings management into income increasing and income smoothing. The results point out that the issuers make use of discretionary accruals in the year prior to IPO to set offer price adjusted for future earnings, which are higher than the counterparts; therefore, income-increasing is related to information about the quality of the firms. Nevertheless, pre-IPOs income-increasing causes investors' overreaction in the early market. The issuers with more income-smoothing before IPOs experience less volatility of long-term price performance. This evidence indicates that income-smoothing conveys information about investment risk. But, there are no obviously relationships between income-smoothing and both of offering price and aftermarket price.