Earnings Management, Buyout Group Reputation and Post-offering Long-Run Stock Performance of Reverse LBOs

• Main Author: ZHOU, Teng Yinzi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: reverse leveraged buyouts; earnings management; buyout group reputation; financial performance; Going public (Securities); Corporate Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/etd_coll/237
• Institution: Singapore Management University

This paper examines earnings management of private equity-backed IPOs around security offerings in a comprehensive sample of Reverse LBOs between 1981 and 2006. These RLBO companies are found to have positive level of discretionary current accruals (DCAs) at a much smaller magnitude compared to othe...