Academic Journal
Impact of IPO grading on earnings management
| العنوان: | Impact of IPO grading on earnings management |
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| المؤلفون: | Maheshwari, Yogesh, Agrawal, Khushbu |
| المصدر: | Journal of Financial Reporting and Accounting ; volume 13, issue 2, page 142-158 ; ISSN 1985-2517 |
| بيانات النشر: | Emerald |
| سنة النشر: | 2015 |
| الوصف: | Purpose – This paper aims to examine the impact of initial public offering (IPO) grading on earnings management by Indian companies in their IPOs. Specifically, it investigates whether earnings management significantly differs in the pre-IPO grading regime and post-IPO grading regime. Further, it examines whether earnings management significantly differs between high-graded and low-graded IPOs. Design/methodology/approach – The cross-sectional modified Jones model is used to obtain the discretionary accruals, a proxy for earnings management. The impact of IPO grading on earnings management is assessed using multiple regression analysis. Findings – Earnings management is significantly lower in graded IPOs as compared to the ones that are not graded. Further, among the graded IPOs, the high-graded IPOs exhibit lower earnings management as compared to the low-graded IPOs. The findings are robust to the use of an alternative measure for discretionary accruals. Originality/value – IPO grading in India is a unique certification mechanism, introduced for the first time in any market. This paper establishes the efficacy of this mandatory certification mechanism in reducing earnings management. The findings could be valuable to issuer companies, investors and market regulators. |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| DOI: | 10.1108/jfra-05-2013-0036 |
| DOI: | 10.1108/JFRA-05-2013-0036 |
| DOI: | 10.1108/JFRA-05-2013-0036/full/xml |
| DOI: | 10.1108/JFRA-05-2013-0036/full/html |
| الاتاحة: | http://dx.doi.org/10.1108/jfra-05-2013-0036 http://www.emeraldinsight.com/doi/full-xml/10.1108/JFRA-05-2013-0036 https://www.emerald.com/insight/content/doi/10.1108/JFRA-05-2013-0036/full/xml https://www.emerald.com/insight/content/doi/10.1108/JFRA-05-2013-0036/full/html |
| Rights: | https://www.emerald.com/insight/site-policies |
| رقم الانضمام: | edsbas.6950153 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1108/jfra-05-2013-0036 |
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