The association between earnings forecast in IPO prospectuses and earnings management: An empirical analysis

Simple item page
dc.contributor.authorBuchner, Axel
dc.contributor.authorMohamed, Abdulkadir
dc.contributor.authorSaadouni, Brahim
dc.date.accessioned2017-09-15T10:16:34Z
dc.date.available2017-09-15T10:16:34Z
dc.date.issued2017-09-01
dc.description.abstractThis paper examines the level of earnings management for large IPOs that provide earnings forecasts and those that do not provide forecasts in the IPO prospectus. Using a sample f 368 IPO firms listed on the London Stock Exchange between 1985 and 2012, we find that the level of earnings management is lower for IPOs that provided earnings forecasts, than for those which did not provide a forecast. This evidence is robust, controlling for endogeneity and sample selection. Further tests reveal that IPOs that provide forecasts outperform their counterparts in the long run, using various long term performance measures. Overall, our results suggest that earnings forecasts at the time of listing convey useful information to investors on the quality of the company listing in the market.en_UK
dc.identifier.citationBuchner A, Mohamed A, Saadouni B. (2017) The association between earnings forecast in IPO prospectuses and earnings management: An empirical analysis. Journal of International Financial Markets, Institutions and Money, Volume 51, November 2017, pp. 92-105en_UK
dc.identifier.issn1042-4431
dc.identifier.urihttps://doi.org/10.1016/j.intfin.2017.08.008
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/12495
dc.language.isoenen_UK
dc.publisherElsevieren_UK
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectInitial public offeringsen_UK
dc.subjectEarnings forecasten_UK
dc.subjectEarnings managementen_UK
dc.subjectLong-run performanceen_UK
dc.titleThe association between earnings forecast in IPO prospectuses and earnings management: An empirical analysisen_UK
dc.typeArticleen_UK

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
The_association_between_earnings_forecast-2017.pdf
Size:
2.24 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.79 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Staff publications (SoM)