Accrual-based and real earnings management activities around initial public offerings

• Main Authors: LIN,Chih-hung, 林志鴻
• Other Authors: Lai,Shu-miao
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/74110683306515035571

碩士 === 開南大學 === 會計學系 === 100 === The objective of this study is to examine accrual-based and real earnings management activities around initial public offerings (IPO). Consistent with our prediction, we find that IPO firms do engage in both accrual-based and real activities manipulation in the IPO year. Furthermore, IPO firms would shift form accrual-based to real earnings management in the post-IPO period. We also find that IPO firms’ choices to accrual and real earnings management are significantly associated with various measures of corporate governance. Finally, we find that real earnings management has greater negative effect on post-IPO performance that accrual-based earnings management. Overall, our empirical results provide new evidence that IPO firms tend to engage in both accrual and real earnings management activities, and they substitute between two methods.