Earnings Management and Seasoned Bond Offerings: Do Managers Mislead the Bond Market?

• Main Authors: Caton, Gary, CHIYACHANTANA, Chiraphol New, CHUA, Choong Tze, GOH, Choo Yong, Jeremy
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1799
• Institution: Singapore Management University

Using discretionary current accruals, we study the earnings management (EM) efforts of firms surrounding seasoned bond offerings. Our results indicate significant EM efforts by issuers in the year of the offering, which is consistent with the notion that issuers attempt to “window dress” their firms...