scholarly journals Studying the Relationship between Company Size, Earnings Management in Initial Public Offerings of Stock and Performance of the Companies Listed on Tehran Stock Exchange

2015 ◽  
Vol 11 (24) ◽  
Author(s):  
Mohsen Rahbar ◽  
Davood Khodadady
Keyword(s):  
Earnings Management ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Company Size ◽  
Public Offerings ◽  
And Performance ◽  
The Relationship

PENDETEKSIAN EARNINGS MANAGEMENT UNDERPRICING, DAN PENGUKURAN KINERJA PERUSAHAAN YANG MELAKUKAN KEBIJAKAN INITIAL PUBLIC OFFERINGS (IPO) DI INDONESIA (Studi Empires Pada Perusahaan Di BEI)

2007 ◽  
Author(s):  
Anita Anita ◽  
Fivi Anggraini
Keyword(s):  
Earnings Management ◽  
Initial Public Offerings ◽  
Sampling Method ◽  
Stock Exchange ◽  
Market Performance ◽  
Company Performance ◽  
Purposive Sampling ◽  
Public Offerings ◽  
And Performance ◽  
Testing Company

The purpose of research for to detect policy of earnings management to include of moment IPO, to detect phenomenon underpricing on first when share traded in market secunder, testing company performance pasta IPO and testing relation policy of earnings management, underpricing and company performance (finance performance and market performance). This research using secunder data from company executing IPO. Samples of this research using purposive sampling method As much 48 company conducting IPO in Indonesian Stock Exchange in research of during 6 year consisted of 3 year before HIO and 3 year after IPO, so that there is 288 unit analysis.Result from this research that mean, that company executing IPO of indication do policy of earnings management some year before moment IPO by playing component accruals, that company executing IPO experience of underpricing on first when share traded in market secunder, that company executing IPO experience of degradation of performance of finance and performance of market, and there is downhill tendency after IPO. The last if connected third the above phenomenon, in general the researcher cannot prove relation between policy earnings management, phenomenon underpricing, and the company market performance and finance performance conducting IPO.

scholarly journals A Comparative Study of Initial Public Offerings in Hong Kong, Singapore and Malaysia

2016 ◽  
Vol 4 (1) ◽  
pp. 1-12
Author(s):  
Horace Ho
Keyword(s):  
Hong Kong ◽  
Comparative Study ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Agency Cost ◽  
Managerial Ownership ◽  
Public Offerings ◽  
Subscription Rate ◽  
Highly Correlated ◽  
The Relationship

Abstract This paper presents the findings of a comparative study on the performance of the initial public offerings (IPOs) of shares listed on the Hong Kong Stock Exchange (HKX), Singapore Exchange (SGX) and Bursa Malaysia (MYX). One indicator of the success of an IPO is its subscription rate, which can be used as a proxy for the level of investor confidence in the stock being offered. This paper examines the relationship between the performance of an IPO and its subscription rate, and the corporate factors that may affect an investor’s decision to subscribe to an IPO. A previous study conducted in Hong Kong (Ho, 2013) did not find support for the effect of the four corporate factors, namely size, managerial ownership prior to the IPO, industry differences and company age, on the subscription decision. However, managerial ownership prior to the IPO was found to be highly correlated with good performance, which could be attributed to a low agency cost in situations where managerial ownership is substantial. Further evidence from Singapore and Malaysia can help to shed light on the importance of agency cost in the pricing of IPOs.

scholarly journals Earnings management and initial public offerings among Indonesian manufacturing companies

2021 ◽  
Vol 18 (3) ◽  
pp. 27-39
Author(s):  
Andreas ◽  
Enni Savitri ◽  
Tatang Ary Gumanti ◽  
Nurhayati
Keyword(s):  
Earnings Management ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Financial Statements ◽  
Asia Pacific ◽  
Manufacturing Companies ◽  
Public Offerings ◽  
Industry Group ◽  
Manufacturing Sectors ◽  
Essential Chemical

Earnings management (EM) refers to the common use of accounting techniques in various economic settings, such as Initial Public Offerings (IPOs), to produce financial statements. This study, therefore, analyzes the effect of firm size, operating cash flow, the used IPO proceeds, earnings changes, and leverage on EM of manufacturing companies on the Indonesia Stock Exchange from 1989 to 2013. This sector comprises the essential chemical industry, miscellaneous organizations, and consumer goods, with 63 firms being used to meet the selection criteria. The regression analysis showed that the intended use of funds and leverage had a negative and significant impact on EM. Furthermore, the process is measured using Friedlan’s (1994) Discretionary Current Accruals model with similar results found in each industry group and their insignificant differences used to regulate the level of discretionary accruals between the three sectors. This study implies that the EM level is qualitatively similar among IPO companies in the three sub-sectors examined. AcknowledgmentsThe authors are grateful to the audience for their comments during the 11th Environmental and Sustainability Management Accounting Network-Asia Pacific (EMAN-AP) Conference held at the Danang University of Economics, Danang, Vietnam, 12-13 August 2019. The early draft was titled “Earnings Management and Initial Public Offerings on Manufacturing Sectors Companies”.

scholarly journals Earnings management, corporate governance, and ownership structure of Philippine initial public offerings

2021 ◽  
Vol 18 (4) ◽  
pp. 175-191
Author(s):  
Angelo O. Burdeos
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Initial Public Offerings ◽  
Ownership Structure ◽  
Stock Exchange ◽  
The Philippines ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Ceo Duality ◽  
Public Offerings

Prior studies examined the effect of corporate governance variables on discretionary current accrual, the most widely used measurement of earnings management. The principal-agent conflict implies that the size of the board, the percent of independent directors, CEO duality, and auditor prestige limit discretionary current accruals (DCA). This paper extends past studies by examining the effect of ownership structure on discretionary current accruals. The study determines the level of income-increasing earnings management of initial public offerings (IPOs) in the Philippines and the factors that explain it. Particularly, the paper examines the effect of ownership concentration and largest shareholder ownership on discretionary current accruals. The study uses a final sample of 105 IPO firms in Philippine Stock Exchange (PSE) from 2008 to 2018. Employing the modified Jones’s (1991) model to measure discretionary current accrual and multiple regression analysis, the study finds -4.19% discretionary current accrual on the average. It also reveals that the 2002 Philippine Code of Corporate Governance (PCCG) is ineffective in curbing earnings management. In addition, there is an insignificant relationship between the size of the board, CEO duality, ownership concentration, largest shareholder ownership and auditor prestige, and earnings management. Furthermore, the paper finds a significant relationship between the percent of independent directors, industry sector, return on assets (ROA) and cash flow from operations and earnings management.

MANAJEMEN LABA PADA PERIODASEBELUM DAN SESUDAH PENAWARAN SAHAM PERDANA DI BURSA EFEK JAKARTA: ANALISIS DENGAN MODEL DEANGELO

2006 ◽  
Vol 2 (2) ◽  
pp. 67
Author(s):  
Elisa Indah ◽  
Erny Ekawati
Keyword(s):  
Real Estate ◽  
Earnings Management ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Operating Performance ◽  
Discretionary Accruals ◽  
Building Construction ◽  
Financial Statement ◽  
Public Offerings ◽  
Industrial Group

The previous research fotmd empirical evidence about existence of earnings monagement of suuraunding IPO (Initial Public Offerings). Previous reseqrch also found that operating performance at period after IPO less than before IPO. The purposes of this research is to reexamine earnings management surrounding IPO and association earnings manog"*"it surrotmding IPO with the operating performance in Indonesiancapital market.This study uses the companies data conducting IPO on 88 /irms that went at Jakarta Stock Exchange for the periods 1995-2002. Company do not the included in industrial group of property, real estate and building construction, and industrial group of finance. The method used toexamine eantings management are the method that develop by DeAngelo.Ihe result of this study by using t-test is fomd that firms manage theiremnings to increqse reported income before IPO and after IPO. It meansthat IPO issuers make income increasing discretionary accruals in thefmancial statement before IPO and in the financial statement afier IPO.In this study by using double regression examination also found thatoperoting performance after IPO less than before IPO. This conditionis consequence firms conduct earnings managetnent before IPO untilhappen underperformance after IPO.Keywords z IPO, earnings management, income increasing discretionaryaccruals, operating performance, DeAngelo model.

scholarly journals Size of Offer, Over-subscription Ratio and Performance of Malaysian IPOs

2020 ◽  
Author(s):  
Othman Yong ◽  
Puan Yatim ◽  
Ros Zam Zam Sapian
Keyword(s):  
Initial Public Offerings ◽  
Significant Positive Correlation ◽  
Stock Exchange ◽  
Kuala Lumpur ◽  
Public Issue ◽  
Positive Correlation ◽  
Public Offerings ◽  
Long Run ◽  
Initial Return ◽  
And Performance

This paper examines the initial and the long-run performance of initial public offerings (IP0s) stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier studies. Size of offer is not correlated with the over-subscription ratio. In general, initial returns. are significantly higher than returns for subsequent longer-term holding periods. Mean initial returns among the three types of issue compared are not significantly different from each other Only in the case of offer for sale that we find a significant positive correlation between its over-subscription ratio and its initial return. Offer for sale also shows a positive correlation between its over-subscription ratio and its raw let11111 far day-365, but turns significantly negative for day-910 and day-] 095. In the case of combination of public issue and offer for sale, over-subscription ratio is not significantly correlated with longer- term returns, for either raw or adjusted return. Finally, in the case of public issue, its over-subscription ratio is significantly correlated with its raw return only for day-180 and day-540, and for its adjusted return, the correlation is significant only for day-180 and day-365.  

scholarly journals The effect of earnings management upon the investment efficiency using the company size as the variable of moderated agent (Empirics study at the companies registered at the Indonesia stock exchange 2014 – 2018)

2020 ◽  
Vol 5 (01) ◽  
pp. 61
Author(s):  
Syarief Gerald Prasetya
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Financial Data ◽  
Company Size ◽  
Investment Efficiency ◽  
Financial Industry ◽  
The Relationship ◽  
Mediator Variable ◽  
Statistical Analysis Methods ◽  
Descriptive Statistical Analysis

This study aims to determine the effect of earnings management on investment efficiency and determine the effect of company size on the relationship between earnings management and investment efficiency, (group of companies overinvestment and underinvestment). This research is a quantitative study using descriptive statistical analysis methods and Moderated Regression Analysis (MRA). The data used are financial data of companies listed on the IDX instead of the financial industry. The results showed that earnings management had affected the efficiency of investment both overinvestment and underinvestment companies. Inspited of that, it has figured out that company size is a mediator variable which means that company size influences the relationship between earnings management and investment efficiency. The strength of the relationship between earnings management and investment efficiency is determined by the size of the company. Keywords: Earnings Management, Investment Efficiency, Company Size

Do sponsors and democratic government influence the flipping activity of Pakistan IPO? Evidence from developing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayesha Anwar ◽  
Rasidah Mohd-Rashid ◽  
Norliza Che Yahya ◽  
Chui Zi Ong
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Accurate Information ◽  
Cross Sectional ◽  
Content Type ◽  
Democratic Government ◽  
Public Offerings ◽  
Trading Volumes ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the impact of sponsors and democratic government on the flipping activity of initial public offerings (IPOs). Design/methodology/approach Based on the sample of 95 IPOs listed on the Pakistan Stock Exchange between January 2000 and December 2019, this study used multiple cross-sectional regression to examine the relationship between sponsors and democratic government on flipping activity. Findings The findings indicate a significant negative association between sponsors and the flipping activity of IPOs. Sponsor(s) signal quality by trying to share accurate information about company values. As a result, the confidence of rational investors in the company’s future prospectus increases and they hold their shares for future gains, which reduces the flipping activity. Also, democratic government, along with sponsors' participation, provides investors with liquidity immediately after listing. Practical limitations/implications The findings of this study have implications for investors as they may assist them make informed decisions about whether or not to invest in an IPO with high sponsor(s) ownership. In addition, issuers should consider the disclosure of sponsor information(s) as such information may directly affect the first day’s trading volumes. Originality/value To the best of the authors’ knowledge, this is the first research study that explores the correlation between sponsors and democratic government and flipping activity of IPO. This study is important for investors and issuers.

scholarly journals Optimisme Investor dan Kinerja Jangka Panjang Saham Pasca Initial Public Offerings yang Listing Di Bursa Efek Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 43-54
Author(s):  
Mu’minatus Sholichah
Keyword(s):  
Initial Public Offerings ◽  
Capital Market ◽  
Stock Exchange ◽  
Company Size ◽  
Public Offerings ◽  
Long Period ◽  
Stock Investment ◽  
Long Term Performance ◽  
Term Performance

This study discusses and analyzes from the perspective of investor optimism and long-term performance after the IPO in the Indonesian capital market. Observations will be made regarding the influence of investors on the increase in the length of shares after the IPO with control variables of company size, company age, offer size, the achievement of underwriters, profitability on the Indonesia Stock Exchange. This study uses data from 2004-2017, with 194 IPO companies from 2004-2015 in the Indonesian capital market. Testing is done by using two drunken linear regression. The results of this study indicate that investors in the Indonesian capital market not only consider irrational factors but also consider rational factors about the company's character in making decisions to buy IPO shares. The characteristics of the company include the size of the company and the size of the stock offering. This study provides benefits for IPO stock investors who rely on the benefits of initial stock investment in a relatively long period of time so as not to suffer losses

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