Earnings management : evidence from intial public offerings of equity carve-outs.

• Main Authors: Chua, Elizabeth Cheng Lian., Koh, Cheryl Chea Lin., Lee, Lian Fen.
• Other Authors: Lim, Chee Yeow
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/8270
• Institution: Nanyang Technological University

In the presence of more public information on equity carve-outs as compared to pre-listed ordinary firms, this paper hypothesizes that carve-outs manage their earnings upward prior to initial public offerings in the face of management incentives. Using the Jones (1991) model, we find support for our...