Does Debt-IPO by Privately-held Firms Trigger Financial Statement?

• Main Authors: Aharony, Joseph, Orpurt, Steven Francis, WANG, Jiwei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Accounting; Corporate Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/252; http://www.krannert.purdue.edu/events/bkd_speakers/papers/orpurtpaper.pdf
• Institution: Singapore Management University

We investigate financial statement management by privately-held firms that only issue debt in an initial public offering (debt-IPO firms). We examine whether, a-priori, managers manage financial ratios important to credit rating agency Standard & Poor’s, attempting to achieve a better cr...