Journal ArticleDOI
Impact of IPO grading on earnings management
TLDR
In this article, the impact of initial public offering (IPO) grading on earnings management by Indian companies in their IPOs has been examined using multiple regression analysis and the cross-sectional modified Jones model is used to obtain the discretionary accruals.Abstract:
Purpose – This paper aims to examine the impact of initial public offering (IPO) grading on earnings management by Indian companies in their IPOs. Specifically, it investigates whether earnings management significantly differs in the pre-IPO grading regime and post-IPO grading regime. Further, it examines whether earnings management significantly differs between high-graded and low-graded IPOs. Design/methodology/approach – The cross-sectional modified Jones model is used to obtain the discretionary accruals, a proxy for earnings management. The impact of IPO grading on earnings management is assessed using multiple regression analysis. Findings – Earnings management is significantly lower in graded IPOs as compared to the ones that are not graded. Further, among the graded IPOs, the high-graded IPOs exhibit lower earnings management as compared to the low-graded IPOs. The findings are robust to the use of an alternative measure for discretionary accruals. Originality/value – IPO grading in India is a uni...read more
Citations
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The role of duality managerial ownership and boards on ipo value (an empirical evidence of indonesian firms)
TL;DR: In this article, the authors investigated the impact of ownership retention, managerial ownership, and boards on value IPO premium and under-pricing in emerging markets by using hand collect data 202 IPO prospectuses during 2008-2017 and using Warp PLS 5.0 to compute the data.
Journal ArticleDOI
Asymmetry and Governance of Corporate Social Responsible Disclosure in Indonesia
Priskila Adiasih,V Lianawati +1 more
TL;DR: In this article, the influence of financial leverage, earnings management (modified Jones model), women on board (percentage), and size of the board on the environmental, social, and governance (ESG) disclosure by corporations in Indonesia was measured.
Journal ArticleDOI
A Review of Asia’s IPO Research
TL;DR: In this paper, the authors survey the literature on Asian IPOs and provide suggestions for future research on this subject, and use Web of Science as a data source to collect related literature.
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Earnings performance of financial and non-financial IPOs in India: an empirical analysis based on market timing
Sunaina Dhanda,Shveta Singh +1 more
TL;DR: In this article , the impact of market timing on issue-year earnings performance for financial and non-financial issuers on the basis of an interaction (moderation) effect was investigated.
References
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Journal ArticleDOI
The Effect of Audit Quality on Earnings Management
TL;DR: In this article, the authors examined the relation between audit quality and earnings management and found that clients of non-Big Six auditors report discretionary accruals that increase income relatively more than the discretionary accumruals reported by clients of big six auditors.
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Earnings Quality at Initial Public Offerings
Ray Ball,Lakshmanan Shivakumar +1 more
TL;DR: In this paper, the authors show that the evidence reported by Teoh, Welch and Wong (1998) in support of the alternative hypothesis, that IPO firms opportunistically inflate earnings to influence the IPO price, is unreliable for a variety of reasons.
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Earnings management, stock issues, and shareholder lawsuits
TL;DR: This article found that abnormal accounting accruals are unusually high around stock offers, especially high for firms whose offers subsequently attract lawsuits, and that such accrual reversals tend to reverse after stock offers and are negatively related to post-offer stock returns.
Journal ArticleDOI
Earnings quality at initial public offerings
Ray Ball,Lakshmanan Shivakumar +1 more
TL;DR: Ball et al. as mentioned in this paper show that, contrary to popular belief, initial public offering (IPO) firms report more conservatively, and attribute this to the higher quality reporting demanded of public firms by financial statement users and consequentially higher monitoring by auditors, boards, analysts, rating agencies, press, and litigants, and to greater regulatory scrutiny.
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Accounting Choices of Issuers of Initial Public Offerings
TL;DR: In this article, the authors report evidence that IPO issuers make income-increasing discretionary accruals in the financial statements released before the offering, consistent with the hypothesis that issuers believe that financial statement information affects IPO offering prices.