scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 13 (2) ◽  
pp. 61 ◽  
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati ,
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p>The purpose of this study was to determine the indications of the practice of earnings<br />management at the time of the IPO, one year after the IPO, and two years after the<br />IPO. This study also examined the effect of earnings management on stock returns<br />and operating performance in moderating the relationship between earnings<br />management and stock returns.<br />The study sample comprised 33 firms that go public in the year 2007 to 2011 using<br />a purposive sampling method. Earnings management is proxied by discretionary<br />accruals using the Modified Jones Model, which used proxy for the stock return is<br />cummulative abnormal returns (CAR), while for the company’s operating<br />performance used proxy for the return on assets (ROA).<br />The results showed that there were indications of earnings management at the time<br />of the IPO, one year after the IPO, and two years after the IPO with a lower profit<br />rate. No effect on earnings management is proxied by stock return cummulative<br />abnormal returns (CAR). Operating performance of the company also can not<br />moderate the relationship between earnings management with stock return.<br />Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal<br />Return, Return On Asset</p>

scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 15 (2) ◽  
pp. 133
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati .
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p><em>The purpose of this study was to determine the indications of the practice of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO. This study also examined the effect of earnings management on stock returns and operating performance in moderating the relationship between earnings management and stock returns.</em></p><p><em>The study sample comprised 33 firms that go public in the year 2007 to 2011 using a purposive sampling method. Earnings management is proxied by discretionary accruals using the Modified Jones Model, which used proxy for the stock return is cummulative abnormal returns (CAR), while for the company's operating performance used proxy for the return on assets (ROA).</em></p><p><em>The results showed that there were indications of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO with a lower profit rate. No effect on earnings management is proxied by stock return cummulative abnormal returns (CAR). Operating performance of the company also can not moderate the relationship between earnings management with stock return.</em></p><p><em> </em></p><p><em>Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal Return, </em><em>Return On Asset</em></p>

Earnings Management and IPO Anomalies—Evidence from Indian Stock Market

2021 ◽  
pp. 227853372199471
Author(s):  
Aprajita Pandey ◽  
J. K. Pattanayak
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Public Offering ◽  
High Level ◽  
Long Term Performance ◽  
Indian Stock Market ◽  
Term Performance ◽  
The Relationship

This study examines the relationship between the extent of earnings management in a firm, the level of underpricing during an initial public offering (IPO), and their long-term performance. Earnings management has been acknowledged as a matter of concern during IPOs since long; however, its relationship with underpricing and long-term returns remained inconclusive in emerging markets like India. Using a sample of Indian IPO firms, this study finds that firms that manage accruals aggressively in the pre-IPO period have high initial returns and subsequently low stock returns in the post-IPO period. This study also observed that firms that have used abnormal accruals more conservatively while reporting earnings have better returns in the third year after IPO compared to the firms that reported more aggressively. The results are in consonance with the theory of information asymmetry and suggest that valuation of an IPO firm becomes ambiguous with high level of earnings management, which leads to higher underpricing.

scholarly journals The Rich Get Richer and the Poor Get Poorer: Social Media and the Post-IPO Behavior of Investors in Biotechnology Firms: The Relationship with Twitter Volume

2021 ◽  
Vol 14 (10) ◽  
pp. 456
Author(s):  
Smadar Siev
Keyword(s):  
Social Media ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Abnormal Returns ◽  
Market Value ◽  
Biotechnology Firms ◽  
The Rich ◽  
Twitter Activity ◽  
Public Offering ◽  
The Relationship

This paper analyzes stock returns for biotechnology firms after initial public offering (IPO) and explores the effect of social media—specifically, Twitter—on these returns. The results indicate positive yet insignificant cumulative average abnormal returns (CAARs) of 1.97% in the first 25 days post-IPO and a decline of tens of percentage points over the following three years. However, after dividing the sample firms into two subsamples according to size, either under or over USD 500 million in market value, the overall results change dramatically. Firms with a market value lower than USD 500 million yield negative CAARs immediately following the IPO; however, this negative CAAR becomes significant only from day 50 onward. Firms with a market value over USD 500 million yield positive CAARs immediately following the IPO, which become significant from day 50, remaining so throughout the following year. These findings can be attributed to the limited duration of investors’ attention, which increases until the end of quiet period and, with small-sized firms, diminishes during the post-IPO years. An examination of Twitter activity and share returns demonstrates a robust correlation between the two, suggesting that investors’ attention to firms may be reflected in their Twitter usage.

Earnings Management During Lockup in Explaining IPO Operating Underperformance

2015 ◽  
Vol 18 (01) ◽  
pp. 1550002 ◽  
Author(s):  
Tsai-Ling Liao ◽  
Chih-Jen Huang ◽  
Hsiao-Chi Liu
Keyword(s):  
Earnings Management ◽  
Initial Public Offering ◽  
High Tech ◽  
Return On Assets ◽  
Management Behavior ◽  
Reversal Effect ◽  
Public Offering ◽  
Lockup Expiration ◽  
The Relationship

This study examines the relationship between initial public offering (IPO) managers' earnings management behavior during lockup (measured with discretionary accruals, DAs) and operating performance following lockup expiration (measured with operating return on assets, OPROAs). Based on a U.S. IPO sample, the results indicate that DAs during lockup are significantly higher than after lockup expiration. In addition, the reversal effect of DAs results in a negative association of DAs in lockup with post-lockup OPROAs. This negative relation is primarily concentrated in small-sized, non-venture backed, high-tech, and hot-market issued IPOs and is consistent with prior findings that such IPO firms have poorer post-issue performance. The overall evidence supports the role of managerial earnings management behavior during lockup in explaining post-IPO operating underperformance.

Analisis Manajemen Laba dan Kinerja Operasi Terhadap Profitabilitas pada Perusahaan Go Public yang Melakukan Initial Public Offering (IPO)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Dwi Sulistiani ◽  
Finta Widya Oktora Maha
Keyword(s):  
Earnings Management ◽  
Initial Public Offering ◽  
Operating Performance ◽  
T Test ◽  
Independent Variables ◽  
Paired Samples ◽  
Signed Rank ◽  
Before And After ◽  
Influential Variable ◽  
Public Offering

This study aimed to determine whether the publicly traded company initial public offering (IPO) using the earnings management policies, as well as to see the effect of earnings management and operating performance on profitability in the company went public policy that performs an (IPO) in 2008. The results showed that the test is based on one- sample t test proved that the company indicated use of earnings management around IPOs. While based on paired samples t - test , and Wilcoxon signed rank the result that there are differences in operating performance and profitability of the company went public between before and after the policy does IPO. It results that the most influential variable is the current ratio dan 62% of the level of profitability of companies doing an IPO is influenced by variables of earnings management and operating performance. Through the F test can be seen that all the independent variables simultaneously affect the dependent variable. Hypothesis testing using T test showed that of the three independent variables found to significantly affect the dependent variable.

scholarly journals Study on the Relationship Between the Audit Committee of Ipo Firms and the First-Day Stock Earnings

2020 ◽  
Vol 4 (2) ◽  
pp. 21
Author(s):  
She Zhangying
Keyword(s):  
Regression Analysis ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Audit Committee ◽  
Stock Exchange ◽  
Public Offering ◽  
The Relationship

This paper mainly discusses the relationship between the audit committee of IPO firms and the stock returns on the first day of trading on the stock exchange. Using the sample of 21 firms that made an initial public offering in ASX between 2008 and 2010, Regression analysis was used to conclude that the existence of the audit committee of IPO firms and listed on the first day of the stock returns have no significant direct relationships. The result shows that the audit committee has no effect on the earnings of the first day of listing, and the establishment of the audit committee may not be considered before listing.

scholarly journals R&D spending and sources of funding of private US biopharmaceutical firms seeking to go public

1969 ◽  
Vol 16 (4) ◽  
Author(s):  
David R Williams ◽  
Richard W Pouder
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Strategic Alliance ◽  
Positive Relationship ◽  
Going Public ◽  
External Sources ◽  
Alliance Partners ◽  
One Year ◽  
Public Offering ◽  
The Relationship

This study analyzes the relationship between the amount of research and development (R&D) spending in private US biopharmaceutical firms before they go public and whether or not these firms tap into external sources of funding for investment before an initial public offering. We focus our study on three specific sources of funding (venture capital investors, biopharmaceutical firm investors and strategic alliance partners) for two different time periods (one year prior to firms going public and cumulative years prior to going public). We found an increase in R&D spending over the course of the study and a positive relationship between R&D spending in the year prior to its going public and venture capital involvement. We also found a positive relationship between the cumulative amount spent on R&D and venture capital involvement and ownership by other biopharmaceutical firms. We use the literature on tradable assets and signaling theory to interpret the implications of our findings. For managers, the results suggest that if their goal is to send signals to future investors by way of spending greater amounts on R&D in the year prior to going public, then venture capital investors are more likely to be associated with this type of activity.

scholarly journals EARNINGS RESPONSE COEFFICIENTS IN THE GREEK MARKET

2013 ◽  
Vol 14 (2) ◽  
pp. 414-431 ◽  
Author(s):  
Dimitrios I. Maditinos ◽  
Željko Šević ◽  
Jelena Stankevičienė ◽  
Nikolaos Karakoltsidis
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Cross Sectional ◽  
Earnings Response Coefficients ◽  
Earnings Response ◽  
Athens Stock Exchange ◽  
One Year ◽  
The Relationship ◽  
Cumulative Model

The paper explores the relationship between accounting information and stock returns of the companies listed on the Athens Stock Exchange (ASE) in the period 1998–2008. Publicly available financial data on the companies included in the ASE during 1998–2008 have been collected and processed. The data sample consists of 245 companies and varies from 2,166 to 1,441 firm-year observations. The research methodology has been based on the extension of the model introduced by Kothari and Sloan (1992) and investigates whether the level of earnings divided by price at the beginning of the stock return period is associated with returns in the context of ‘prices lead earnings’ using annual and quarterly data. Cross-sectional regression analysis points to a significant relationship between earnings and returns on measurement windows of one year and longer. Similar results have been found in the case of a cumulative model where earnings are aggregated up to four years; however, relationship in the short measurement window up to three quarters has resulted in low earnings response coefficients.

scholarly journals Analysis of the impact of Fies on the stock returns from the higher education sector

2019 ◽  
Vol 30 (81) ◽  
pp. 368-380
Author(s):  
Marília Cordeiro Pinheiro ◽  
André Luiz Marques Serrano
Keyword(s):  
Higher Education ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Abnormal Returns ◽  
Ministry Of Education ◽  
Treasury Bonds ◽  
Education Market ◽  
Public Offering ◽  
Higher Education Market ◽  
The Impact

ABSTRACT This article aims to analyze if the issuance of Series E Treasury Bonds (CFT-Es) generates abnormal returns in a higher education stock portfolio and verify if the Brazilian higher education market is efficient in its semi-strong form. The main purpose of CFT-Es is to transfer funds to institutions with the aim of providing finance to students enrolled in private universities. These issuances have effects on the capital market, considering that after the program began, the first initial public offering (IPO) of a Brazilian university occurred. Moreover, according to the National Institute for Educational Studies and Research Anísio Teixeira/Ministry of Education and Culture (Inep/MEC), Brazil has the largest market for higher education in Latin America. Several studies have been conducted to analyze the relationship between monetary policy and financial markets, but this has not occurred within the scope of fiscal policy. Such research is appropriate, considering the discussion on the need to contain government spending, but at the same time stimulate the Brazilian economy. The main contribution of the study is it indicates that the higher education market has tended towards the efficiency hypothesis, considering that in the first analysis, H0 was not rejected for 82% of the windows of events, and in the second analysis, H0 was not rejected for any of the windows of events, with there being no evidence of abnormal gains due to funds being released for the Student Finance Fund (Fies). The event study methodology was used to test the hypotheses of abnormal returns obtained due to CFT-Es being issued through the release of ordinances. A portfolio composed of higher education stocks was elaborated, weighted by the quarterly amount receivable from Fies for each institution, and covering 2009 to 2017. The results show that the stocks of institutions benefiting from Fies tend to react efficiently to CFT-E issuances authorized by the National Treasury.

scholarly journals Allocation of Funds from Public Offerings of Shares (IPO's) in Brazil and Stock Returns

2021 ◽  
Vol 9 (2) ◽  
pp. 46
Author(s):  
George André Willrich Sales ◽  
Rodolfo Leandro de Faria Olivo ◽  
Rodolfo Vieira Nunes ◽  
Fabiana Lopes da Silva
Keyword(s):  
Decision Making ◽  
Stock Returns ◽  
Abnormal Returns ◽  
Allocation Of Resources ◽  
Public Offerings ◽  
The Public ◽  
Data Survey ◽  
Abnormal Stock Returns ◽  
Public Offering ◽  
The Relationship

This study analyzes the relationship between the allocation of funds raised in a public offering of shares and abnormal profitability on the first day of trading. The objective is to identify whether the allocation of resources can be considered for the decision-making of investors. To measure the data, multivariate analysis was used, and the data survey considered the information from the prospectuses of the public offers and the announcements for the closing of the offers, between January 2007 and December 2011. Two hypotheses were tested: one in relation to allocation of resources and another in relation to the group of investors participating in the offer. The results show that there is no relationship between the allocation of resources and the abnormal returns of companies. However, for investors who are part of the company's management, they were related to abnormal stock returns on the first day of trading.

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