Do Firms Mislead Investors by Overstating Earnings Before Seasoned Equity Offerings

By L. Shivakumar. 2000

632 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/13bb202de5a4c091657c9b18718e7f674326fc3a

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Citations in the corpus

Myopic Marketing Management: Evidence of the Phenomenon and Its Long-Term Performance Consequences in the SEO Context (2007, background): “Shivakumar (2000) finds evidence consistent with the financial markets being aware that some firms are engaging in earnings inflation at the time of an SEO, i.e., the markets react less to earnings announcements at the time of an SEO compared to other periods.”
Earnings management and the market performance of acquiring firms (2004, background): “Consistent with rational market expectations, Shivakumar (2000) finds a significant negative correlation between a firm’s discretionary accruals and the market reaction to the announcement of a seasoned equity offering (SEO).”
Venture Capital and Corporate Governance in the Newly Public Firm (2012, neutral): “Similar arguments are found in Erickson and Wang (1999) in the context of mergers, and Shivrakumar (2000) in the context of seasoned equity offerings.”
Conforming Tax Avoidance and Capital Market Pressure (2019, neutral): “One common proxy for capital market pressure is anticipated equity issuances (e.g., Teoh, Welch, and Wong 1998; Shivakumar 2000).”
Analyst Coverage and Earnings Management (2008, background): “…management, such as initial public offerings (Teoh, Welch, and Wong, 1998a), seasoned equity offerings (Rangan, 1998; Teoh, Welch, and Wong, 1998b; Shivakumar, 2000), management buyouts (DeAngelo, 1986; Perry and Williams, 1994), mergers and acquisitions (Erickson and Wang, 1999), proxy contests…”
Do Firms Manage Earnings to Meet Dividend Thresholds (2008, neutral): “5Healy and Wahlen (1999), Dechow and Skinner (2000), and Fields et al. (2001) provide excellent reviews of the earnings management literature.”
Revenue Manipulation and Restatements by Loss Firms (2008, background): “Rangan (1998), Teoh et al. (1999), and Shivakumar (2000) document that firms manage earnings upwards in periods prior to issuing equity in an attempt to increase share value.”
Property rights protection, corporate transparency, and growth (2009, neutral): “A number of studies document that profitable firms limit the amount of information they disclose, or even report false information (Schipper (1989), Shivakumar (2000), and Chaney, Faccio and Parsley (2007)).”
Earnings Management and Firm Performance Following Open-Market Repurchases (2008, background): “…prior to corporate events such as: management buyouts (Perry and Williams 1994), initial public offerings (IPOs) (Teoh, Welch, and Wong 1998a), seasoned public offerings (SEOs) (Teoh, Welch, and Wong 1998b; and Shivakumar 2000), and stock-for-stock mergers (Erickson and Wang 1999; and Louis 2004).”
A study of earnings-management motives in the Anglo-American and Euro-Continental accounting models: The Canadian and French cases (2006, neutral): “…1990; Sweeney, 1994), regulatory cases (Cahan, 1992; Jones, 1991; Key, 1997), and stock price motives such as stock offering (Erickson & Wang, 1999; Shivakumar, 2000; Teoh, Welch, & Wong, 1998), avoiding decreases and losses (Burgstahler & Dichev, 1997; Burgstahler & Eames, 2003) and meeting…”
How far can we trust earnings numbers? What research tells us about earnings management (2013, background): “It seems likely that the previous argument of Shivakumar (2000) is likely to apply here also.”
Is the Market Surprised by Poor Earnings Realizations following Seasoned Equity Offerings? (2001, methodology): “We estimate non-discretionary accruals (ac) using a procedure similar to that of Jeter and Shivakumar (1999).”