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Author : Siew Hong Teoh
Publisher :
ISBN 13 :
Total Pages : 58 pages
Book Rating : 4.3/5 ( download)
Download or read book Incentives and Opportunities for Earnings Management in Initial Public Offerings written by Siew Hong Teoh and published by . This book was released on 1994 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Fotini Mastroianni
Publisher :
ISBN 13 : 9783668440715
Total Pages : 36 pages
Book Rating : 4.4/5 (47 download)
Download or read book Asymmetric Information Relating to Initial Public Offering Underpricing written by Fotini Mastroianni and published by . This book was released on 2017-05-29 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2012 in the subject Economics - Finance, language: English, abstract: The main reason why companies decide to proceed with IPO is mainly to gain access to new funding. The proceeds from the share issue itself are not necessarily intended for direct expansion. The prospects for growth from acquisitions, the funds available for organizational expansion and refinancing of current borrowings have shown, among other things, to be the main motives that newly listed companies consider as very important. The general initial public offering procedure enhances the image and publicity of enterprises and gets not only an initial certification of the professionals in the financial markets but also a long-term price bidding (price signal) to suppliers, workforce and customers. According to Roell (1996), a robust equity value in the subsequent acquisition (during the trading of securities after their initial bid for public offering) reassures suppliers that they can safely grant trade credit, employees are convinced that they can expect a fairly stable job, and customers think that the products of the company will be supported as a result of their purchase (in the aftermath of their purchase).
Author : Siew Hong Teoh,T.J.Wong,Gita R. Rao
Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.L/5 ( download)
Download or read book Earnings management and the Long-term market performance of initial public offerings.Working Paper #9401-29 written by Siew Hong Teoh,T.J.Wong,Gita R. Rao and published by . This book was released on 1994 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Peter Ising
Publisher : Springer Gabler
ISBN 13 : 9783658040963
Total Pages : 240 pages
Book Rating : 4.0/5 (49 download)
Download or read book Earnings Accruals and Real Activities Management around Initial Public Offerings written by Peter Ising and published by Springer Gabler. This book was released on 2014-04-30 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: The beginning of the new millennium was characterized by company scandals in accounting around the world. A transparent and fair presentation of financial statements is beneficial for capital market participants. Especially around initial public offerings different incentives of these players exist to influence financial statements in diverse aspects. Therefore, studies of earnings management try to identify abnormal behavior. This thesis covers additional aspects to shed light on substantial drivers of discretionary reporting behavior around going public. Factors like influence on real activities, industry affiliation, and specific years in the IPO process add further insight to this theoretical and practical topic. The dependence on these factors is high and confirm that company specifics are important for interpretation of results.
Download or read book Earnings Management Around Financial Sponsor Backed Initial Public Offerings - Theoretical Discussion and Empirical Examination written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyzes earnings management around financial sponsor backed initial public offerings. Using a sample of 185 private equity and 267 venture capital backed firms that went public on either the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotations (NASDAQ) in the ten years from 2004 to 2013, potential earnings manipulation is examined at three different points in time: the year before the offering, as well as the year of and the year immediately after it. The study finds mean statistically significant discretionary current accruals of 2.58% for private equity backed firms in the year of the offering, indicating positive earnings management in that year. However, taking also total discretionary accruals into account and combining the results with the ones obtained for venture capital backed firms, the provided evidence suggests that, contrary to initial beliefs, financial sponsor backed companies do report quite conservatively in the years around their initial public offering and do not aggressively inflate earnings. In addition, venture capital backed firms seem to report even more conservatively than their private equity backed counterparts. Investors are, however, advised to always subjectively assess earnings quality by looking at specific accounting based earnings management techniques before investing in such equity offerings.
Author : Arvin Ghosh
Publisher : Transaction Publishers
ISBN 13 : 9780765803269
Total Pages : 156 pages
Book Rating : 4.8/5 (32 download)
Download or read book Pricing and Performance of Initial Public Offerings in the United States written by Arvin Ghosh and published by Transaction Publishers. This book was released on 2006 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this timely volume on newly emerging financial mar- kets and investment strategies, Arvin Ghosh explores the intriguing topic of initial public offerings (IPOs) of securities, among the most significant phenomena in the United States stock markets in recent years. Before the 2000-2001 market turndown, hardly a week went by when more than a few companies did not become public, either in the organized stock exchange or in the Over the Counter (OTC) market. In the often over-burdened, technology-heavy Nasdaq market, the role of IPOs was crucial for the market's new vigor and growth. Internet stocks were able to find a mode to supply key momentum to the market. In the so-called "New Economy" of the 1990s, it was the seductively accessible IPO that ushered in the world's information technology revolution. Ghosh sets out to examine the pricing and financial performance of IPOs in the United States during the period 1990-2001. In the opening chapter he discusses the rise and fall of IPOs in the preceding decade. Chapter 2 further delineates the IPO process from the start of the prospectus to the end of the "quiet period" and aftermarket stabilization. In chapter 3 Ghosh analyzes the mispricing and deliberately deceptive underpricing, or "flipping," of Internet IPOs. Chapter 4 delves deeper into the pricing and operating efficiency of Nasdaq IPOs. Chapter 5 analyzes the pricing and long-run performance of IPOs both in the New York Stock Exchange and in the Nasdaq markets. In chapters 6 and 7 the author deals with the pricing and performance of the venture-blocked and nonventure-backed IPOs in general and Internet IPOs in particular. In chapter 8 he analyzes the role of underwriters as market makers. In chapter 9 Ghosh discusses the accuracy of analysts' earnings forecasts. In the concluding chapter, he summarizes the principal findings of the study and the recent revival of the IPO market and its place in capital formation as well as the latest developments in the realm of United States IPOs. This work brings forth the true nature and consequences of the recent IPO phenomenon. It is a fascinating financial read and must-have for any future financier. Arvin Ghosh is a professor in the Department of Economics, Finance, and Global Business at William Paterson University in Wayne, New Jersey.
Author : Rolf J. Daxhammer
Publisher : UVK Verlag
ISBN 13 : 3739801727
Total Pages : 243 pages
Book Rating : 4.7/5 (398 download)
Download or read book Initial Public Offerings – An inside view written by Rolf J. Daxhammer and published by UVK Verlag. This book was released on 2017-11-13 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a corporations financial life going public by means of an IPO is probably the single most important decision. It turns a private company into a public one. Our book will provide an inside view of the IPO process. On the one hand, it draws on the insights of an experienced investment banker, who has gone through numerous IPO transactions. On the other hand, it relates the story of an actual IPO through the eyes of a Chief Executive Officer who has taken two of his companies public. This unique double perspective is our books defining feature. We do not discuss initial public offerings in a textbook style fashion. What we would like to bring out is a more comprehensive portrayal of a once-in-a-lifetime event for most companies and their management, alike.
Author : Lawrence H. Bajor
Publisher :
ISBN 13 :
Total Pages : 124 pages
Book Rating : 4.3/5 (129 download)
Download or read book Income Management After Initial Public Offerings written by Lawrence H. Bajor and published by . This book was released on 2002 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Susan E. Morecroft
Publisher :
ISBN 13 :
Total Pages : 208 pages
Book Rating : 4.:/5 (379 download)
Download or read book Earnings Management in Initial Public Offerings written by Susan E. Morecroft and published by . This book was released on 1996 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Scott N. Bronson
Publisher :
ISBN 13 :
Total Pages : 136 pages
Book Rating : 4.:/5 (718 download)
Download or read book Essays on IPO-firm Earnings Management written by Scott N. Bronson and published by . This book was released on 2006 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: PART 1 This paper provides evidence on the timing of earnings management behavior for initial public offering (IPO) firms in the annual periods surrounding the offering. It also examines whether this behavior is related to CEO and CFO trading after the offering. Using discretionary accruals as my proxy for earnings management, I find that, for firms that file a new 10-K before the trading restrictions provided in underwriter lockup agreements end, average IPO-firm discretionary accruals are significantly positive in the first 10-K filed after the offering, and that these discretionary accruals are significantly larger than those in the offering prospectus. I also find a positive relation between CEO and CFO trading activity and discretionary accruals for the same group of companies. Taken together, the results suggest that earnings management behavior is more prevalent in the first 10-K filed than in the offering prospectus, that it is concentrated in the firms that file this 10-K before their lockup period expires, and that it is positively related to CEO and CFO trading after the offering. PART 2 This paper examines whether earnings management behavior has decreased in the period following the passage of the Sarbanes-Oxley Act of 2002 (SOX) for IPO firms. It also explores how any changes I observe for IPOs relate to any changes that have occurred for the broader set of public companies. I find that IPO firms have experienced a significant decrease in earnings management after the passage of SOX. The results also provide evidence that this decrease is driven by the smallest public companies. While pre-SOX discretionary accruals for IPO firms are larger than those for non-IPO firms, I find that the post-SOX decrease in discretionary accruals results in the level of IPO-firm discretionary accruals becoming indistinguishable from that of non-IPO firms. Finally, the evidence suggests that the characteristics of post-SOX offerings are different from those of pre-SOX offerings, and that the decrease in discretionary accruals in the post-SOX period remains after controlling for these changes.
Author : C.S. Agnes Cheng
Publisher :
ISBN 13 :
Total Pages : 41 pages
Book Rating : 4.:/5 (13 download)
Download or read book State Ownership and Earnings Management Around Initial Public Offerings written by C.S. Agnes Cheng and published by . This book was released on 2018 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates earnings management by firms around their initial public offerings (IPOs) in domestic Chinese equity markets. Using a sample of 437 IPO firms, we find that Chinese firms tend to inflate earnings around their IPOs. We also show that state-owned enterprises (SOEs) manage earnings to a lesser degree than non-state-owned enterprises (NSOEs) do around IPOs. Furthermore, using path analysis, we find that two incentive factors, CEO shareholding and accessibility to bank loans, explain 48% of the correlation between state ownership and earnings management for IPO firms. In particular, accessibility to bank loans is a more important incentive factor that leads to less earnings management for SOEs than NSOEs.
Author : Suzanne G. Morsfield
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (129 download)
Download or read book Do Venture Capitalists Constrain or Encourage Earnings Management in Initial Public Offerings written by Suzanne G. Morsfield and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether venture capitalists (VCs) provide value-added monitoring by constraining IPO-related earnings management in their portfolio firms. Finance theoretical literature is mixed as to its characterization of whether venture capitalists reduce principal-agent conflicts through their unique contracting, information collection, monitoring, and support skill/opportunity sets, or whether VCs have incentives to exploit their unique skills and proximity to firm management at the expense of other investors. Little empirical research has focused to date on identifying observable and measurable tests of specific elements of the perceived VC governance skills or incentives set on the actual market value of the firms in their investment portfolios. Earnings management around an IPO is a context where we may be able to both observe and quantify the impact of these perceived skills and incentives. Consistent with the current accounting theory of earnings management detection, we focus on a specific capital markets context where the use of inappropriate earnings-increasing discretionary accruals is expected - i.e., the initial public offering (IPO) setting. We find evidence that abnormal discretionary accruals are significantly lower and that long-run returns are significantly higher for VC-backed IPO firms relative to a matched sample of non-VC-backed IPO firms - these findings suggest that VCs behave more like principals than agents in this context. We also provide evidence that the direction of the discretionary accruals (i.e., income-increasing versus income-decreasing) is important when attempting to understand both the presence and determinants of earnings management in an IPO context. When positive and negative accruals are examined separately, VC presence is related to lower income-increasing discretionary accruals. We find no association between VC presence and income-decreasing accruals. Our results are robust to alternative variable specifications, and to controls for IPO market cycles and IPO lockup provisions.
Author : Brian John Adams
Publisher :
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4.:/5 (13 download)
Download or read book Earnings Management and Initial Public Offerings written by Brian John Adams and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a typical IPO, insiders are “net sellers” of IPO shares; however, in a demutualizing thrift, insiders are “net buyers” of IPO shares. Using a sample of mutual depository IPOs, we find evidence consistent with earnings management prior to the conversion of mutual thrifts. We find on average that mutuals report lower ROA and increased loan loss provisions and loan loss reserves in the period prior to the demutualization. Using a two-stage approach, we also find that the level of discretionary loan loss provisions and discretionary reserves are positively related to both the level of insider participation in the IPO and the first-day returns to investors. Our results are consistent with management of mutual thrifts benefiting at the conversion from reduced pre-IPO earnings and book equity resulting from earnings management.
Author : Seth Anderson
Publisher : Springer Science & Business Media
ISBN 13 : 9780792396338
Total Pages : 142 pages
Book Rating : 4.3/5 (963 download)
Download or read book Initial Public Offerings: Findings and Theories written by Seth Anderson and published by Springer Science & Business Media. This book was released on 1995-10-31 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Initial public offerings (IPOs) play a crucial role in allocating resources in market economies. Because of the enormous importance of IPOs, an understanding of how IPOs work is fundamental to an understanding of financial markets generally. Of particular interest is the puzzling existence of high initial returns to equity IPOs in the United States and other free-market economies. Audience: Designed for use by anyone wishing to perform further academic research in the area of IPOs and by those practitioners interested in IPOs as investment vehicles.
Author : Jinliang Li
Publisher :
ISBN 13 :
Total Pages : 56 pages
Book Rating : 4.:/5 (129 download)
Download or read book Earnings Management and Delisting Risk of Initial Public Offerings written by Jinliang Li and published by . This book was released on 2010 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Earnings management is a corporate decision subject to costs. Both earnings management in the IPO process and the ex ante delisting risk of newly issued firms are related to firm fundamentals. With a sample of IPOs from 1980 to 1999, we find that the degree of earnings management possesses significant predictive power on IPO failure. IPO firms associated with aggressive earnings management are more likely to delist for performance failure, and tend to delist sooner. Furthermore, we find that IPO firms associated with conservative earnings management are more likely to be merged or acquired and they earn positive abnormal returns. Our results also show that IPO issuers manage earnings in response to market demand. Market-wide earnings management of IPO firms interacts with the IPO cycle documented by Lowry and Schwert (2002).
Author : Dimitrios Gounopoulos
Publisher :
ISBN 13 :
Total Pages : 51 pages
Book Rating : 4.:/5 (13 download)
Download or read book Credit Rating Impact on Earnings Management Around Initial Public Offerings written by Dimitrios Gounopoulos and published by . This book was released on 2016 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of having a credit rating on earnings management (EM) through accruals and real activities manipulation by initial public offering (IPO) firms. We find that firms going public with a credit rating are less likely to engage in income-enhancing accrual-based and real EM in the offering year. The monitoring by a credit rating agency (CRA) and the reduced information asymmetry due to the provision of a credit rating disincentivise rated issuers from managing earnings. We also suggest that the participation of a reputable auditing firm is crucial for CRAs to effectively restrain EM. Moreover, we document that for unrated issuers, at-issue income-increasing EM is not linked to future earnings and negatively related to post-issue long-run stock performance. However, for rated issuers, at-issue income-increasing EM is positively associated with subsequent accounting performance and unrelated to long-run stock performance following the offering. The evidence indicates that managers in unrated firms generally manipulate earnings to mislead investors, while managers in rated firms tend to exercise their accounting and operating discretion for informative purposes.
Author : David A. Westenberg
Publisher :
ISBN 13 : 9781402418952
Total Pages : 0 pages
Book Rating : 4.4/5 (189 download)
Download or read book Initial Public Offerings written by David A. Westenberg and published by . This book was released on 2018-10 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
