The Relation between Seasoned Equity Offerings and Financial Reporting

• Main Authors: Chuang,Mei-Hui, 莊美慧
• Other Authors: Yeh,Shu
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/49518600845798239948

碩士 === 國立臺灣大學 === 會計學研究所 === 84 === This report studies whether listed firms realize unusually large amount of gains or losses from disposals of investments, at seasoned equity offerings. Furthermore, this report investigates whether the disposal gains or losses are related to firm''s operating performance, amount of investments, and financing needs. The results show that (1)the disposal gains or losses reported in the latest financial statements filed with Securities Exchange Commission for seasoned equity offerings are significantly greater than those reported in the precious year''s financial statements. (2)the disposal gains or losses are negatively correlated with operating performance but positively correlated with the beginning balance of investments. (3)the disposal gains or lossed are not correlated with the additional financing requirement related to the seasoned equity offerings. Overall, the evidence is consistent with the notion that firms engaged in seasoned equity offering utilize the disposal of investments to window dress their financial statements.