Credit Rating Impact on Earnings Management Around Initial Public Offerings

Gounopoulos, Dimitrios; Pham, Hang

doi:10.2139/ssrn.2696625

Cited by 3 publications

(2 citation statements)

References 61 publications

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“…Because, interventions made by the insiders in the reported figures for their gains have created an information asymmetry between the insiders and the public (Beatty & Harris, 1999). Such insider interventions were mainly made for higher credit rating Gounopoulos and Pham (2022), better IPO proceeds (DuCharme & Malatesta, 2001;Abraham & Kumar, 2023), meeting analysts forecasts (Abarbanell & Lehavy, 2003), non-violation of debt covenants (Franz et al, 2014) and so on. However, aggressive EM practices by insiders have resulted in poor performance (Rangan, 1998), bankruptcy (Durana et al, 2021), and adverse stock returns (DuCharme, 2004) in the long run.…”

Section: Introductionmentioning

confidence: 99%

Shariah compliance and earnings management in India: Insights on reporting transparency and financial stability

Abraham

2024

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The present study examines the impact of earnings management on financial stability and reporting transparency among Shariah and Shariah-non-compliant firms in India from 2008 to 2023. The Study uses Kothari and Roychodhury models to estimate earnings management proxies. Earnings manipulation and bankruptcy of the sample firms were estimated using Beneish’s M-score and Altman’s Z-score models. The Study reveals that compared to non-Shariah firms, the Shariah-complaint firms are less prone to earnings management and bankruptcy, and it was also found that they are more transparent in reporting their results. Overall, the study confirms that more than a religious indexation, Shariah screening is effective in maintaining ethical conduct of business practices that enhance the protection of investors. The findings of this study aid managers in policy formulations, and it will be helpful for potential investors in making investment decisions based on Shariah principles.

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Section: Introductionmentioning

confidence: 99%

Shariah compliance and earnings management in India: Insights on reporting transparency and financial stability

Abraham

2024

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“…In turn, the venture capitalist, whose goal is to achieve an important capital gain in the medium to long term through the sale of the acquired shares, will not be willing to finance an entrepreneur. Therefore, between the venture capitalist and the entrepreneur there is a mutual selection, in order to best satisfy their respective objectives (Gounopoulos & Pham, 2016;Kleinschmidt, 2007).…”

Section: Introductionmentioning

confidence: 99%

An Empirical Analysis of Underpricing and Oversubscription between Venture-Backed IPO and Non-Venture-Backed IPO in Italy

Sicoli¹,

Bronzetti²,

Baldini³

2019

IBR

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Over the years, in order to meet the financial needs of companies, new forms of financing alternative to the traditional banking channel have been developed. These include the institutional investment in risk capital, which is defined by the terms Anglo-Saxon venture capital and private equity. In this empirical analysis, the divestment of the venture capitalist's participation will be emphasized by listing the invested companies in the stock market, a channel not widely used in Italy, but highly desired because of the various benefits it can bring. Analyzing the IPOs that were carried out in Italy on the main list from 2007 to 2017, we will verify what is described in the economic literature, which is that a venture capitalist, by performing a certification role, is able to reduce the information asymmetries presented in the listing process and, as a result, contain underpricing and improve oversubscription. By using the presence of a venture capitalist within the venture capital as the only variable, it has been observed that on average the underpricing and oversubscription of the venture-backed IPOs slightly differentiate from the non-venture-backed IPOs. However, the study carried out shows that this difference, although not significant, turns out to be very interesting.

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Credit Rating Conservatism and Corporate Tax Avoidance: Evidence from the Dodd-Frank Act As a Quasi-Natural Experiment

2017

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Credit Rating Impact on Earnings Management Around Initial Public Offerings

Cited by 3 publications

References 61 publications

Shariah compliance and earnings management in India: Insights on reporting transparency and financial stability

Shariah compliance and earnings management in India: Insights on reporting transparency and financial stability

An Empirical Analysis of Underpricing and Oversubscription between Venture-Backed IPO and Non-Venture-Backed IPO in Italy

Credit Rating Conservatism and Corporate Tax Avoidance: Evidence from the Dodd-Frank Act As a Quasi-Natural Experiment

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