Earnings management and performance of French IPO companies

Djerbi, Chiraz; Jarboui, Anis

doi:10.5897/jat2013.0106

Cited by 18 publications

(21 citation statements)

References 97 publications

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“…Using multivariate regression analysis, the results showed a significant positive association between conservative accounting and the quality of financial reporting. Chiraz and Anis (2013) examines the impact of earnings management on the performance of the IPO on the Paris Stock Exchange. Corporate performance is measured on the basis of the ROA, MV, and EPS.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…However, there are studies which criticize conservatism for the potential distortion of information, its negative impacts on resource allocation and on corporate performance. While the relationship between performance and accounting conservatism has been the theme of intensive research in developed and developing economies, for example Ugwunta and Ugwuany (2019) in Nigeria, Sana'a (2016) in Jordan, Chiraz and Anis (2013) in France, Chiraz and Anis (2013) in Iran, and Chan et al (2006) in the UK, no such studies have been conducted in Egypt. According to the contingency theory, the relationship between conservative accounting and corporate performance differs according to the diverse institutional environment.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

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The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

El-Habashy¹

2019

IJBM

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This study aims to investigate the impact of conservative accounting on corporate performance indicators of Egyptian firms. A sample of balanced data for the 40 most active non-financial companies was collected in the period 2009-2014 to test hypotheses. Panel regression models were used for data analysis. Givoly & Hayn (2000) indicator is used as a benchmark for measuring accounting conservatism. The corporate performance indicators used in this study are return-on-assets (ROA) and return on equity (ROE) representing accounting performance measures, as well as Tobin’s Q which measures market performance. The results of the research show that accounting conservatism has a significant positive impact on corporate performance indicators. This reflects the positive effect of corporate performance on shareholders that leads to a strong corporate financial position. To the best of our knowledge, no study has been conducted in Egypt as an emerging economy.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

El-Habashy¹

2019

IJBM

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“…Lin and Tian (2012) presents the negative association between accounting conservatism and underpricing of initial public offerings especially when information asymmetry is high in the Chinese stock market between the years 2001 and 2009. Chiraz and Anis (2013) find no evidence to verify the relation initial proceeds and discretionary current accruals in 139 French IPO firms 1999 to 2007. However, they also concluded that first year for the firms as a public company is the highest period for earnings inflation.…”

Section: Initial Public Offerings In Turkeymentioning

confidence: 89%

Earnings Management Around Initial Public Offerings: Borsa Istanbul Application

Güleç

Temiz

Karacaer

2016

isarder

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This paper studies the presence of earnings management in initial public offerings (IPOs) of Turkish firms. The sample consists of 30 Turkish firms that went public in the years 2011 to 2015 on the Borsa Istanbul. Since there is no market-determined price for IPO share before they are sold to market participants by issuers and underwriters, increasing the attractiveness of an IPO share will be related the degree of earnings management before going public. Therefore this paper aims to find whether IPO issuers make discretionary accruals in their financial statements in order to affect the IPO share price before, during and after going public. According to the results, discretionary accruals level is the highest in the IPO year which is expected as in the other studies and there is statistically significant difference between different periods.

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“…Therefore, managers of younger and less experienced firms have stronger incentives to manage earnings to increase them (Chiraz and Anis, 2013).…”

Section: Control Variablesmentioning

confidence: 99%

“…We also include the firm age variable (YEARS), as the literature points out the important effect of age of company and earnings management (Anthony and Ramesh, 1992;Petersen and Rajan, 1997;Liu, 2006;Fan, 2007;Stubben, 2010;Lee and Masulis, 2011;Chiraz and Anis , 2013). A firm's age has an impact on executives' decision-making process and how they manage different situations.…”

Section: Yearsmentioning

confidence: 99%

Why Do Companies From Emerging Countries Manage Earnings?

Callao¹,

Jarne²,

Wróblewski³

2017

EJBM

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This paper provides evidence in terms of the incentives which lead managers from emerging European countries to manage earnings. In particular, we focused on four Eastern European countries: the Czech Republic, Poland, Hungary and Slovakia, as the majority of studies on earnings management in developing countries were based on the Asian emerging market. The market of developing European countries is still barely explored. After we confirmed that managers from emerging European companies manage earnings, we find that within the different incentives which lead managers to earnings management, the avoidance of debt covenants violations is a strong incentive for managers. Additionally, those firms considered as poor investments (with less value) have incentives to manage earnings down as a consequence to opt for market niche. Moreover, emerging Eastern European companies have incentives to flatten earnings of current periods in order to benefit in the future as the source of future nonmanipulated earnings will be insufficient, as they may expect reduced, or at least lower future performance of their companies affected by increasing global competition. Finally, we confirm that privately-owned companies tend to maximize accounting earnings more than state-owned companies because they are in a weaker position related to a specific political and historical factors.

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Earnings management and performance of French IPO companies

Cited by 18 publications

References 97 publications

The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

Earnings Management Around Initial Public Offerings: Borsa Istanbul Application

Why Do Companies From Emerging Countries Manage Earnings?

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