2009
Cooking the books around initial public offerings
Publication
Publication
A study about the pervasiveness of earnings management and investor protection regulations
Most prior studies suggest that firms opportunistically increase their earnings around an initial public offering (IPO). With a sample of 512 IPOs in 24 countries worldwide I find that IPO firms that are under suspicion of such behaviour, represent only a small proportion (+/-10%) of the total sample. My findings challenge the opportunistic perspective on earnings management and suggest that the information perspective is more pronounced. Furthermore, I find no evidence for a positive relationship between low investor protection regulations and opportunistic earnings management. It seems that stronger enforcement of investor protection laws do not counter self-interested behaviour.
| Additional Metadata | |
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| , , | |
| Erasmus University Rotterdam | |
| hdl.handle.net/1765/15571 | |
| Organisation | Erasmus School of Economics |
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Seger, J. (2009). Cooking the books around initial public offerings: A study about the pervasiveness of earnings management and investor protection regulations. Retrieved from http://hdl.handle.net/1765/15571 |
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