This study investigates the earnings performance of 418 initial public offerings （IPOs） listed on the stock exchange of Hong Kong. By analyzing several profitability measures of these 1PO companies from the third ye...This study investigates the earnings performance of 418 initial public offerings （IPOs） listed on the stock exchange of Hong Kong. By analyzing several profitability measures of these 1PO companies from the third year prior to listing up to the fifth year post-listing, it is found that IPO companies＇ operating performances as a whole peak in the year of listing or the year preceding the listing, but exhibit a fall in post-issue profitability with the decline being most pronounced in the first financial year following the year in which the listing take place. Over 30% of these IPOs suffer a loss three years after the offerings. Deterioration of post-issue performance is found to be more severe for smaller finns, highly-geared companies, fast-growing enterprises, companies with lower ownership retention by original shareholders, and companies which have managed earnings upwards at the time of listing. These observations are consistent with the higher agency costs when firms go public and that managers have timed the issue at the peak of the companies＇ long-run performance. Further investigation confirms that IPO companies in general make use of income-increasing accruals to manage their earnings upwards in the year when they go public. The reversal of the accruals in post-issue years further exaggerates the decline in their profitability.展开更多
The scope of this paper is to contribute to the question of delisting (both voluntary and involuntary), with particular emphasis on the initial conditions leading up to the Initial Public Offering (IPO) of the firms. ...The scope of this paper is to contribute to the question of delisting (both voluntary and involuntary), with particular emphasis on the initial conditions leading up to the Initial Public Offering (IPO) of the firms. The case of Athens Stock Exchange (ASE) is examined, specifically the IPOs of years 1996-2004 and their subsequent performance (delisting or not) till the end of 2017. We find that the probability of delisting is positively associated with the size of the issuance and the degree of earnings’ manipulation and negatively associated with audit quality, information transparency, and market timing. The effects of audit quality, size of issuance, and earnings’ manipulation are accentuated in instances of voluntary delisting while the effect of market timing is more clearly pronounced in instances of involuntary delisting. Our results are robust to a number of confounding factors including size, profitability, leverage, liquidity, growth options, and corporate governance. Our work is not replication of existing studies;in addition, we choose ASE as in that capital market there were many delistings the last two decades.展开更多
本文研究发现:随着我国证券发行制度由审批制向核准制的转移,特别是保荐制的实施,IPO公司盈余管理水平显著下降。应计盈余管理和实质盈余管理呈显著正相关,没有发现Cohen et al(.2008)等西方研究文献所证明的随着监管制度的加强,应计管...本文研究发现:随着我国证券发行制度由审批制向核准制的转移,特别是保荐制的实施,IPO公司盈余管理水平显著下降。应计盈余管理和实质盈余管理呈显著正相关,没有发现Cohen et al(.2008)等西方研究文献所证明的随着监管制度的加强,应计管理和实质盈余管理方式相互替代,此消彼长的趋势。核准制尤其是保荐制的运用,可以约束IPO公司机会主义盈余管理的行为,系统提高上市公司盈余质量。展开更多
文摘This study investigates the earnings performance of 418 initial public offerings （IPOs） listed on the stock exchange of Hong Kong. By analyzing several profitability measures of these 1PO companies from the third year prior to listing up to the fifth year post-listing, it is found that IPO companies＇ operating performances as a whole peak in the year of listing or the year preceding the listing, but exhibit a fall in post-issue profitability with the decline being most pronounced in the first financial year following the year in which the listing take place. Over 30% of these IPOs suffer a loss three years after the offerings. Deterioration of post-issue performance is found to be more severe for smaller finns, highly-geared companies, fast-growing enterprises, companies with lower ownership retention by original shareholders, and companies which have managed earnings upwards at the time of listing. These observations are consistent with the higher agency costs when firms go public and that managers have timed the issue at the peak of the companies＇ long-run performance. Further investigation confirms that IPO companies in general make use of income-increasing accruals to manage their earnings upwards in the year when they go public. The reversal of the accruals in post-issue years further exaggerates the decline in their profitability.
文摘The scope of this paper is to contribute to the question of delisting (both voluntary and involuntary), with particular emphasis on the initial conditions leading up to the Initial Public Offering (IPO) of the firms. The case of Athens Stock Exchange (ASE) is examined, specifically the IPOs of years 1996-2004 and their subsequent performance (delisting or not) till the end of 2017. We find that the probability of delisting is positively associated with the size of the issuance and the degree of earnings’ manipulation and negatively associated with audit quality, information transparency, and market timing. The effects of audit quality, size of issuance, and earnings’ manipulation are accentuated in instances of voluntary delisting while the effect of market timing is more clearly pronounced in instances of involuntary delisting. Our results are robust to a number of confounding factors including size, profitability, leverage, liquidity, growth options, and corporate governance. Our work is not replication of existing studies;in addition, we choose ASE as in that capital market there were many delistings the last two decades.
文摘本文研究发现:随着我国证券发行制度由审批制向核准制的转移,特别是保荐制的实施,IPO公司盈余管理水平显著下降。应计盈余管理和实质盈余管理呈显著正相关,没有发现Cohen et al(.2008)等西方研究文献所证明的随着监管制度的加强,应计管理和实质盈余管理方式相互替代,此消彼长的趋势。核准制尤其是保荐制的运用,可以约束IPO公司机会主义盈余管理的行为,系统提高上市公司盈余质量。
