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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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
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Journal ArticleDOI
An empirical study of the effect of venture capital participation on the accounting information quality of IPO firms
TL;DR: Li et al. as mentioned in this paper analyzed the effect of venture capital participation on accounting information quality and found that venture capitalists have a significant effect on earnings management, with reduced discretionary accruals before the expiration of the equity lock-up period and enhanced discretionary accumruals after the expiration period.
Posted Content
Role of Underwriters in Restraining Earnings Management in Initial Public Offerings
TL;DR: In this paper, the authors investigate the relationship between underwriter reputation and earnings management of IPO firms over the period of 1991-2005 and find that IPO firms engage in less earnings management if they are underwritten by prestigious investment bankers.
Journal ArticleDOI
Role Of Underwriters In Restraining Earnings Management In Initial Public Offerings
TL;DR: In this paper, the authors investigate the relationship between underwriter reputation and earnings management of IPO firms over the period of 1991-2005 and find that IPO firms engage in less earnings management if they are underwritten by prestigious investment bankers.
Journal Article
Earnings Management Practices for Venture IPO Firms
Soon Suk Yoon,Hyo-Jin Kim +1 more
TL;DR: Yoon et al. as discussed by the authors examined the earnings management practices for the Kosdaq venture firms in comparison to the non-venture firms and the KSE firms when they go public.
Journal Article
The Effects of Underwriter Reputation on Pre-IPO Earnings Management and Post-IPO Operating Performance
TL;DR: In this article, the authors examined the relationship between underwriter reputation and post-IPO operating performance of IPO firms using a sample of 369 IPO issuers between 1997 and 2002.