Accounting flexibility and managers' forecast behavior prior to seasoned equity offerings

• Main Author: KIM, Jae Bum
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Voluntary disclosure; management earnings forecast; accounting flexibility; seasoned equity offerings; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1564; https://ink.library.smu.edu.sg/context/soa_research/article/2591/viewcontent/AccountingFlexibilityManagerForecastSEO_2016.pdf
• Institution: Singapore Management University

This study examines the effect of accounting flexibility on managers’ forecasting behavior prior to seasoned equity offerings (SEOs). Although SEO firms have a strong incentive to convey optimistic information to boost the pre-SEO stock price, they also face enhanced litigation risk arising from SEO...