| Summary: | 碩士 === 國立臺北大學 === 經濟學系 === 103 ===
This study utilizes data of 2004 to 2013 IPO companies in Taiwan to investigate the relationships between earnings management and IPO initial returns. Following early studies of earnings management of Leuz et al. (2003), Bhattacharya et al. (2003) and Zutter, Smart, and Boulton (2011), the earnings smoothing, earnings aggressiveness, and earnings management aggregate variables are considered in the model to investigate the relationships between earnings management and IPO initial returns. The IPO initial returns and effects of earnings management on IPO initial returns are then tested, respectively, to see if they are significantly different from periods of before, during, and after 2007-2009 global financial crisis.
Major findings of this study are as follows. First, earnings smoothing behavior of IPO companies in Taiwan is found to have significantly negative impact on IPO initial returns. Earnings aggressiveness and earnings management aggregate are found to have significantly positive impacts on IPO initial returns. Results suggest that investors tend to believe the disclosed information of the IPO companies and are optimistic to future price performance to be higher than the offer price, i.e., a higher IPO initial returns is expected. Second, the IPO initial returns are found to be significantly different from the periods of before, during, and after financial tsunami. IPO initial returns during the period of financial crisis are found to be the highest, followed by periods after and then before the financial crisis. The effects of earnings management aggregate on IPO initial returns are also found to be significantly different from periods before, during, and after financial tsunami. Effects of earnings management on IPO initial returns are found to be the largest during the financial crisis, followed by periods of before and after crisis. Results indicate that, when facing the global financial tsunami, IPO companies in Taiwan tend to manage earnings more aggressively to assure IPO investor’s higher initial returns and this behavior did not last after the financial crisis.
Keywords：IPO Initial Returns, Earnings Management, Financial Tsunami
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