Download Kb Preview Abstract This thesis builds on information asymmetry, agency conflicts and litigation-risk backgrounds to examine real and accrual earnings management activities around Initial Public Offerings IPOsmitigating factors regulators and auditorsand consequences for future performance stock return and IPO survivability.
Incentives and opportunities of accrual-based earnings magement AEM have also been documented. Also, real activities manipulation REMwhich is defined as firms' deviation from normal business practices, is widely studied in recent earnings magement literature.
|Accrual-based and real earnings management activities around seasoned equity offerings||You can help correct errors and omissions.|
|accrual-based e real earnings management | WordReference Forums||Abstract Purpose - Prior research suggests that firms manipulate earnings through accruals to achieve certain reporting objectives. Recently, especially following the Sarbanes-Oxley SarbOx Act, researchers have turned their attention to real account manipulation as an alternative.|
REM has been studied in settings such as around zero earnings threshold, SEOs, as well as meeting or beating alysts' earnings forecasts. The purpose of this study is to examine the presence of REM of IPO firms utilizing the cross-sectiol regressions on each industry-year Roychowdhury, The real activities examined in this paper include sales manipulation, reduction of discretiory expenses and overproduction.
The results show that IPO firms have significantly negative abnormal cash flows from operations and significantly positive abnormal production costs in the IPO year. The findings suggest that IPO firms not only manipulate accruals to inflate reported earnings, but also engage in real activities manipulation.
In studying the determints of earnings magement activities, results show that IPO firms' decisions to manipulate earnings in the IPO year is positively related to the amounts of IPO proceeds and negatively related to the underwriters' reputation rankings and the presence of venture capital.
For further details please refer to the University Intellectual Property Policy.Keywords: leverage, debt, real earnings management, accrual-based earnings management, market performance.
Accrual, Earnings Management, INTRODUCTION Based or Real Earnings Management). This study assumes that earnings management in an emerging market like the Nigerian Stock Exchange (NSE) is likely to present some problems for a true and qualitative earnings report. Earnings management is the acceleration or deferral of expenses or revenue through operating or accounting practices with the objective to produce consistent growth in earnings. These earnings may not reflect the underlying economics of the enterprise for the time-period. The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China Jing-Ming Kuoa,⁎, Lutao Ningb, Xiaoqi Songc a Southampton Management School, University of Southampton, Highfield, Southampton SO17 1BJ, UK b School of Business and Management, Francis Bancroft Building, Queen Mary, University of London, Mile End Road, London .
1 We are grateful to the Editor, Professor Edward Lee, and to . audit quality impacts real earnings management activities that occur during the IPO, whether enhanced audit quality impacts managers’ tendency to choose between real and accrual earnings management, and whether enhanced audit quality affects the association between real and accrual earnings management and post-IPO stock return performance.
Using a unique panel data set of publicly traded firms in 30 countries, our results show that politically connected firms are more likely to substitute real earnings management strategies for accrual-based earnings management strategies than non-connected firms.
Abstract: The study examines whether Malaysian IPO firms engage in real and accrual earnings management and determines the impact of institutional ownerships on the earnings management The modified Jondiscretionary behaviour.
es () and Roychowdhury () models were used to investigateaccrual and real activity behaviours. This thesis builds on information asymmetry, agency conflicts and litigation-risk backgrounds to examine real and accrual earnings management activities around Initial Public Offerings (IPOs), mitigating factors (regulators and auditors), and consequences for .
1 Accrual and Real-based Earnings Management by UK Acquirers: Evidence from Pre- and Post-Higgs Periods Abstract Purpose: This study investigates the occurrence of pre-merger earnings management for a sample of stock- and cash-financed UK acquirers between and