A Study on the Post-IPO Performance Decline - An Earnings Management Perspective

• Main Authors: HUANG, MEI-SHU, 黃美淑
• Other Authors: HSIEH, YUNG-MING
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/q8u739

碩士 === 東吳大學 === 會計學系 === 107 === The main purpose of the study is to explore whether the operating performance of Taiwan's newly IPO companies after their offering is lower than that before their offering and further to check whether the decline in the company's operating performance after their IPO is related to the magnitude of earnings management before their offering. This study is based on a sample data covering their IPO years from 2011 to 2014 in Taiwan capital markets. The estimation methods for indicators of earnings management are referred to Kothari, Leone, and Wasely (2005) for measuring accrued earnings management and Cohen and Zarowin (2010) for measuring real earnings management. Empirical results show that the operating performance (proxied by ROE, ROA and EPS) of Taiwan's newly IPO companies after their offering is significantly lower than that before their offering. Is it possible to verify whether the decline in the company's operating performance after their offering is related to the magnitude of earnings management before their IPO? The regression results presented that the magnitude of earnings management before their IPO has no significant relationship with the company's operating performance after their IPO. It is difficult to explain the decline in business performance after the company's IPO is affected by the earnings management behavior before the IPO. In short, the decline in the operating performance of the company after IPO is not explained by the magnitude of earnings management before the IPO. Therefore, this study concludes the decline in the company's operating performance after IPO is due to other unknown factors.