Are Accruals during Initial Public Offerings Opportunistic?

被引：7

作者：

Siew Hong Teoh

T. J. Wong

Gita R. Rao

机构：

[1] University of Michigan Business School,

[2] Hong Kong University of Science and Technology,undefined

[3] Colonial Management Associates,undefined

来源：

Review of Accounting Studies | 1998年 / 3卷 / 1-2期

关键词：

Stock Return; Earning Management; Initial Public Offering; Initial Public; Prior Performance;

D O I：

10.1023/A:1009688619882

中图分类号：

学科分类号：

摘要：

We find evidence that initial public offering (IPO) firms, on average, have high positive issue-year earnings and abnormal accruals, followed by poor long-run earnings and negative abnormal accruals. The IPO-year abnormal, and not expected, accruals explain the cross-sectional variation in post-issue earnings and stock returns. The results are robust with respect to alternative abnormal accruals and earnings performance measures. IPO firms adopt more income-increasing depreciation policies when they deviate from similar prior performance same industry non-issuers, and they provide significantly less for uncollectible accounts receivable than their matched non-issuers. The results taken together suggest opportunistic earnings management partially explains the new issues anomaly.

引用

页码：175 / 208

页数：33

共 57 条

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