Zarządzanie zyskami i underpricing dla spółek debiutujących na rynku wschodzącym
DOI:
https://doi.org/10.18559/SOEP.2018.2.1Keywords:
Initial Public Offering (IPO), Emerging markets, Earnings management, UnderpricingAbstract
The empirical design of this study concentrates on earnings management activities around initial public offerings of equity (IPOs). Previous studies for developed markets mostly concluded that many companies managed earnings around important company events. Such practices were especially aggressive around important corporate events, and the IPO is reputedly one of them. This study aims at the measurement of the pervasiveness of earnings management and describing its consequences for company short-term market pricing on an emerging market, mainly for Poland. Earning management was measured with discretionary accruals proxied with the application of cross sectional models. The empirical research provided evidence that earnings management practices were also reported for Polish IPO companies around IPO. However, strong differences in aggressive earnings management among IPO firms were revealed during the subperiods of stable or bull versus bear market. Earnings management approximated by discretionary accruals had informative power in explaining first-day IPO returns.Downloads
References
Agathee, U. S., Brooks, C., & Sannassee, R. V. (2012). Hot and cold IPO markets: the case of the Stock Exchange of Mauritius. Journal of Multinational Financial Management, 22(4), 168-192.
Aharony, J., Lin, C. J., & Loeb, M. P. (1993). Initial public offerings, accounting choices, and earnings managemen. Contemporary Accounting Research, 10(1), 61-81.
Aussenegg, W. (2000). Privatization versus private sector initial public offerings in Poland. Multinational Finance Journal, 41 (2), 69-99.
Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics, 39, 83-128.
Ball, R., & Shivakumar, L. (2008). Earnings quality at initial public offerings. Journal of Accounting and Economics, 45(2), 324-349.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37.
Bernard, V. L., & Thomas, J. K. (1989). Post-earnings-announcement drift: delayed price response or risk premium? Journal of Accounting Research, 1-36.
Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24(1), 99-126.
Chaney, P. K., & Lewis, C. M. (1995). Earnings management and firm valuation under asymmetric information. Journal of Corporate Finance, 1(3), 319-345.
Cornanic, A., & Novak, J. (2013). Signalling by underpricing the initial public offerings of primary listings in an emerging market. Retrieved from SSRN: http://ssrn.com/ abstract=2273470.
Czapiewski, L., & Lizińska, J. (2014). Performance of Polish IPO firms: size and profitability effect. Gospodarka Narodowa, 1, 53-70.
DeAngelo, L. E. (1986). Accounting numbers as market valuation substitutes: a study of management buyouts of public stockholder. Accounting Review, 400-420.
Dechow, P. M., & Schrand, C. M. (2004). Earnings quality. Research Foundation of CFA Institute, USA.
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. Accounting Review, 193-225.
DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145-176.
DuCharme, L. L., Malatesta, P. H., & Sefcik, S. E. (2001). Earnings management: IPO valuation and subsequent performance. Journal of Accounting, Auditing & Finance, 16(4), 369-396.
Francis, J., Schipper, K., & Vincent, L. (2002). Expanded disclosures and the increased usefulness of earnings announcements. Accounting Review, 77(3), 515-546.
Friedlan, J. M. (1994). Accounting choices of issuers of initial public offerings. Contemporary Accounting Research, 11(1), 1-31.
Gajdka, J. (2012). Kształtowanie zysków w przedsiębiorstwach w kontekście kryzysu finansowego (Zeszyty Naukowe Uniwersytetu Szczecińskiego, Finanse. Rynki finansowe. Ubezpieczenia No. 51, pp. 303-311).
Hotchkiss, E. S., & Strickland, D. (2003). Does shareholder composition matter? Evidence from the market reaction to corporate earnings announcements. Journal of Finance, 58(4), 1469-1498.
Ibbotson, R. G. (1975). Price performance of common stock new issues. Journal of Financial Economics, 2, 235-272.
Jelic, R., & Briston, R. (2003). Privatisation initial public offerings: the Polish experience. European Financial Management, 9(4), 457-484.
Jewartowski, T., & Lizińska, J. (2012). Short-and long-term performance of Polish IPOs. Emerging Markets Finance and Trade, 48(2), 59-75.
Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 193-228.
Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis. OECD Journal: Financial Market Trends, 1, 61-87.
Lyn, E. O., & Zychowicz, E. J. (2003). The performance of new equity offerings in Hungary and Poland. Global Finance Journal, 14, 181-195.
Nagata, K. (2013). Does earnings management lead to favorable IPO price formation or further underpricing? Evidence from Japan. Journal of Multinational Financial Management, 23(4), 301-313.
Nagata, K., & Hachiya, T. (2007). Earnings management and the pricing of initial public offerings. Review of Pacific Basin Financial Markets and Policies, 10(4), 541-559.
Ritter, J. R. (2003). Differences between European and American IPO markets. European Financial Management, 9(4), 421-434.
Ronen, J., & Yaari, V. (2008). Earnings management, Springer US.
Sloan, R. (1996). Do stock prices fully reflect information in accruals and cash flows about future earnings? Accounting Review, 71(3), 289-315.
Subramanyam, K. R. (1996). The pricing of discretionary accruals. Journal of Accounting and Economics, 22(1), 249-281.
Teoh, S., Welch, I., & Wong, T. (1998). Earnings management and the subsequent market performance of initial public offerings. Journal of Finance, 53, 1935-1974.
Tucker, J. W., & Zarowin, P. A. (2006). Does income smoothing improve earnings informativeness? Accounting Review, 81(1), 251-270.
Downloads
Published
Issue
Section
License
Copyright (c) 2018 Wydawnictwo UEP
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Lorem ipsum dolor sit amet quam leo, cursus vitae, commodo convallis consequat. Donec pulvinar porta neque, blandit risus commodo sit amet ante. Quisque condimentum. Donec orci interdum euismod scelerisque tincidunt. Maecenas vitae mi. Pellentesque orci vitae nunc venenatis tristique, convallis accumsan, dolor sit amet metus. Curabitur tempor. Phasellus sem. Quisque.
