“Earnings Management” as a Factor for Underpricing Initial Public Offerings: Evidence from the Warsaw Stock Exchange
“Earnings Management” as a Factor for Underpricing Initial Public Offerings: Evidence from the Warsaw Stock Exchange
Author(s): Rafał CieślikSubject(s): Social Sciences, Business Economy / Management
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: earnings quality; earnings management; accounting manipulations; accruals; IPO; underpricing
Summary/Abstract: The paper undertakes the assessment of the relationship between “earnings quality” and the underpricing effect in initial public offerings (IPO). The research encompasses data found in the financial statements of companies making their IPO on the Warsaw Stock Exchange over the years 2008–2011. The approach used to assess earnings quality was the measurement of abnormal accruals. The resultsof this research are consistent with other studies. They demonstrate that on the Polish capital market the “quality” of financial information is a significant factor behind the underpricing of shares in the IPO process.
Journal: Problemy Zarządzania
- Issue Year: 14/2016
- Issue No: 4 (63)
- Page Range: 103-112
- Page Count: 10
- Language: English