Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/11703
Appears in Collections:Accounting and Finance Working Papers
Title: Earnings Management in IPOs: Determinants and Post-IPO Performance
Authors: Ahmad-Zaluki, Nurwati A
Campbell, Kevin
Goodacre, Alan
Contact Email: kevin.campbell@stir.ac.uk
Citation: Ahmad-Zaluki NA, Campbell K & Goodacre A (2009) Earnings Management in IPOs: Determinants and Post-IPO Performance.
Keywords: initial public offerings
earnings management
ownership structure
long run stock market performance
Issue Date: 2009
Abstract: The paper provides 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). The requirement to provide a profit guarantee appears to reduce rather than encourage earnings management. Within this high ownership concentration market, ownership concerns also appear to constrain IPO earnings management. Owners are willing to forego 'opportunistic' earnings management and signalling opportunities to increase their likelihood of retaining control of the company post-IPO. IPO companies engaging in aggressive earnings management have significantly worse market-based performance than their more conservative counterparts, but only during the economic crisis period.
Type: Working or Discussion Paper
URI: http://hdl.handle.net/1893/11703
URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=963085#Link%20to%20http://ssrn.com/abstract=963085
Affiliation: Northern University of Malaysia
Accounting and Finance
Accounting and Finance

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