THE INTENDED USE OF FUNDS AND IPOs MARKET PERFORMANCE IN INDONESIAN CAPITAL MARKET

Meidiaswati, Harlina; Sasikirono, Nugroho; Novita, Dina

doi:10.9744/jmk.21.2.120-129

Cited by 2 publications

(1 citation statement)

References 37 publications

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“…Balatbat and Bertinshaw (2008) researched 174 Australian IPOs and discovered that it was extremely relevant when making investment decisions. Meidiaswati et al (2019) reported that using proceeds related to the performance of IPOs in the Indonesian market is also utilized during decision-making concerning investment. Leone et al (2006) and Balatbat and Bertinshaw (2008) reported that the use of funds caused a decline in information asymmetry among issuers (managers) and third parties such as investors and other fund providers.…”

Section: Introductionmentioning

confidence: 99%

Earnings management and initial public offerings among Indonesian manufacturing companies

Andreas

Savitri

Gumanti

et al. 2021

Investment Management and Financial Innovations

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Earnings management (EM) refers to the common use of accounting techniques in various economic settings, such as Initial Public Offerings (IPOs), to produce financial statements. This study, therefore, analyzes the effect of firm size, operating cash flow, the used IPO proceeds, earnings changes, and leverage on EM of manufacturing companies on the Indonesia Stock Exchange from 1989 to 2013. This sector comprises the essential chemical industry, miscellaneous organizations, and consumer goods, with 63 firms being used to meet the selection criteria. The regression analysis showed that the intended use of funds and leverage had a negative and significant impact on EM. Furthermore, the process is measured using Friedlan’s (1994) Discretionary Current Accruals model with similar results found in each industry group and their insignificant differences used to regulate the level of discretionary accruals between the three sectors. This study implies that the EM level is qualitatively similar among IPO companies in the three sub-sectors examined. AcknowledgmentsThe authors are grateful to the audience for their comments during the 11th Environmental and Sustainability Management Accounting Network-Asia Pacific (EMAN-AP) Conference held at the Danang University of Economics, Danang, Vietnam, 12-13 August 2019. The early draft was titled “Earnings Management and Initial Public Offerings on Manufacturing Sectors Companies”.

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Section: Introductionmentioning

confidence: 99%

Earnings management and initial public offerings among Indonesian manufacturing companies

Andreas

Savitri

Gumanti

et al. 2021

Investment Management and Financial Innovations

View full text Add to dashboard Cite

show abstract

Application from South Korea on the decomposition of the strategic procedure of IPO proceeds

Khan

Ahmad

2022

J. Finan. Eng.

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The study’s key aim is to decide what South Korean initial public offering (IPO) issuers indicate as their intended usage of IPO proceeds, as well as the use with the highest amount of allocation, and whether the allocation of IPO proceeds to each intended use varies across industries. In order to fulfil the study’s target, a manual material review of prospectuses from 235 IPO issuers was conducted between 2005 and 2015. Descriptive statistics, one-way analysis of variance, Independent Sample [Formula: see text]-test, and Wilcoxon Rank Sum Test were used to evaluate the results. The findings reveal that issuers plan to use IPO proceeds for a range of purposes. Capital investment, on the other hand, earned the largest volume and proportion of IPO proceeds, followed by debt restructuring and company growth. The trend of allocation of IPO proceeds for a particular purpose is affected by the industry classifications of issuers, according to further research using the Independent Sample [Formula: see text]-test and Wilcoxon Rank Sum Test, since there is a statistically relevant discrepancy between the mean values of allocation of IPO proceeds across industries. The technology sector, for example, has a statistically higher mean research and development (R&D) score than other sectors. As a result, future research into how the expected usage of IPO proceeds impacts subsequent IPO results will be important.

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THE INTENDED USE OF FUNDS AND IPOs MARKET PERFORMANCE IN INDONESIAN CAPITAL MARKET

Cited by 2 publications

References 37 publications

Earnings management and initial public offerings among Indonesian manufacturing companies

Earnings management and initial public offerings among Indonesian manufacturing companies

Application from South Korea on the decomposition of the strategic procedure of IPO proceeds

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