Do Firms Manage Their Earnings During Initial Public Offerings?
| Main Author: | Rakhman, Fuad |
|---|---|
| Format: | Article info eJournal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Journal of Accounting Research
, 2013
|
| Subjects: | |
| Online Access: |
http://ijar-iaikapd.or.id/index.php/ijar/article/view/273 |
Daftar Isi:
- This study investigates if IPO firms in Indonesia manage theirearnings around the time of their IPO. Using financial data from 1999to 2012, I examine the abnormal accruals of IPO firms during the threeyears prior to their IPO year and in their IPO year. I find that issuingfirms managed their earnings starting two years prior to their IPO yearand that earnings management was most profound in the IPO year. Furthertests indicate that firms used income-increasing accruals duringthe period leading to the IPO. These findings are consistent with theview that firms manage their earnings to maximize the initial offer priceand the proceeds from the IPO