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Do managers mislead investors through earnings manipulation before SEOs?

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Resumo:In this study, I assess the discretion in financial reported earnings before seasoned equity offerings (SEOs). Using a sample of 344 European SEOs between 2000 and 2010, together with a propensity score matched control sample, I find evidence of statistically significant and economically relevant real earnings manipulation before these corporate events; in contrast, there is no evidence of accruals manipulation. The results also suggest that prior to the equity issue the amount of earnings management is higher in countries where the quality of the information environment is poor. Additionally, I do not find significant differences in post-issue long-term stock performance between issuers and comparable non-issuers. However, consistent with the literature, I find that post-issue market-adjusted performance is significantly lower for issuers. To some extent, the results suggest a negative relation between pre-issue earnings management and post-issue stock performance.
Autores principais:Ferreira, Joana Catarina Soares
Assunto:Seasoned equity offerings Earnings management Accruals Real activity manipulation Long-term performance Emissão de novo capital Gestão de resultados Manipulação de atividades reais Performance de longo-prazo
Ano:2016
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho

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