Earnings Management and Ownership Retention for Initial Public Offering Firms: Theory and Evidence

By Qintao Fan. 2007

160 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/50b8112cae8585108217e5ba12c1cd2173f4c99f

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Citations in the corpus

The impact of audit quality on real and accrual earnings management around IPOs (2017, background): “However, Fan (2007) shows that IPO issuers use retained ownership and earnings management as a signal to the market.”
Earnings Quality and International IPO Underpricing (2011, unknown): “…to market inefficiency, broadly speaking, because analysts are not sufficiently skeptical of earnings figures influenced by discretionary accruals.4 Fan (2007) offers mixed support for Teoh et al. and Teoh and Wong by reporting that discretionary accruals are indeed highest in the IPO year,…”
Real and accrual earnings management and IPO failure risk (2015, background): “Roosenboom et al. (2003) and Fan (2007) also find similar evidence that IPO firms with the highest level of accruals manipulation during the IPO experience a decline in postIPO performance.”
Earnings Quality and Ownership Structure: The Role of Private Equity Sponsors (2009, unknown): “To avoid having overlapping periods in the estimation of buy-and-hold returns, following Chou et al. (2006) and Fan (2007), I also estimate the value-weighted monthly abnormal returns based on calendar time using the Fama and French (1993) three factor model.”
How far can we trust earnings numbers? What research tells us about earnings management (2013, background): “The story in Fan (2007) supports assumption 1 above regarding rationality, but allows for the possibility that managers have superior information about the firm’s future prospects that they are able to communicate to the market through a mixture of EM choices and ownership retention choices.”
Mandatory Audit Firm Rotation and Audit Quality (2016, background): “an initial public offering, in year t, and 0 otherwise) is included, as prior studies show that firms tend to use accruals to increase reported earnings in the year of the IPO to improve the offering’s marketability and to obtain a better price for the new issue (Fan, 2007; Teoh, Wong, & Rao, 1998).”