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
More filters
Journal ArticleDOI
Pre-IPO earnings management: Evidence from India
TL;DR: In this paper, the authors find evidence that Indian firms which utilize reputable investment banks are less likely to manipulate pre-IPO earnings and also support the capital market staging hypothesis in India.
Journal ArticleDOI
Earnings Management and Performance of IPO Firms: Evidence from India:
Deepa Mangala,Mamta Dhanda +1 more
TL;DR: In this paper, the authors proposed that disclosure through corporate annual reports is intended to enhance transparency and reduce information asymmetry during public issues, and that there is something fishy about the corporate annual report.
The Impact of Audit Quality on Earnings Management: An Experimental Study with Evidence from IPO
TL;DR: In this article, the authors investigated the effect of audit quality on earnings management of real-time IPO companies and found that audit quality increases in the year of initial public offerings and decreases after the initial public offering.
Journal ArticleDOI
Corporate governance and investment decisions of retail investors in equity: do group affiliation and firm age matter?
TL;DR: In this paper , the authors examined the impact of corporate governance on the shareholding level of retail investors in Indian listed firms and found that the firm-level corporate governance quality positively affects retail investors' share-holding level.
References
More filters
Journal ArticleDOI
Audit quality and earnings management for Taiwan IPO firms
TL;DR: In this article, the authors investigated the relationship between audit quality (as measured by auditor size and industry specialization) and earnings management for Taiwan IPO firms and found that high quality auditors constrain earnings management and provide more...
Journal ArticleDOI
Do Venture Capitalists Influence the Decision to Manage Earnings in Initial Public Offerings
TL;DR: In this paper, the authors predict and find that IPO-year abnormal accruals are lower in the presence of VCs for a sample of 2,630 IPO firms during 1983-2001.
Posted Content
Earnings Quality and International IPO Underpricing
TL;DR: In this article, the authors examined the impact of country-level earnings quality on IPO underpricing and found that IPOs are underpriced less in countries where public firms produce higher quality earnings information.
Journal ArticleDOI
Earnings Management in Malaysian IPOs: The East Asian Crisis, Ownership Control and Post-IPO Performance
TL;DR: In this paper, the authors provide general evidence of income-increasing earnings management in Malaysian IPOs but this occurs primarily during a period of severe economic stress (the East Asian crisis), and the requirement to provide a profit guarantee appears to reduce rather than encourage earnings management.
Journal ArticleDOI
Regulations, earnings management, and post-IPO performance: The Chinese evidence
TL;DR: In this paper, the authors examine whether government regulatory initiatives in China involving IPO by SOEs may have contributed to opportunistic behaviors by the issuer and find that IPO firms that report better pricing-period accounting performance have larger declines in post-IPO profitability, lower first-day stock returns and worse long-run post IPO stock performance.