Earnings quality at initial public offerings in China
This paper examines earnings management during IPO process in the Chinese context. Disagreeing with previous research, this study finds that IPO firms are not motivated to manage earnings upward before IPO. Managers are inclined to overstate the earnings of IPO year and these inflated earnings would...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36893/ |
| _version_ | 1848795354589298688 |
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| author | REN, Shaohong |
| author_facet | REN, Shaohong |
| author_sort | REN, Shaohong |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines earnings management during IPO process in the Chinese context. Disagreeing with previous research, this study finds that IPO firms are not motivated to manage earnings upward before IPO. Managers are inclined to overstate the earnings of IPO year and these inflated earnings would be reversed after issuing. Those firms that conduct more aggressive earnings management at IPO year are more likely to experience post-issue accounting performance deterioration. Two of CSRC regulations are tested to investigate whether they could influence earnings management before IPO or not. The results indicate that the minimum net income requirement may no longer be a motivation of pre-IPO earnings management and the intangible assets proportion limitation could constrain earnings management through R&D to some extent. |
| first_indexed | 2025-11-14T19:30:45Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36893 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:30:45Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-368932017-10-19T17:04:54Z https://eprints.nottingham.ac.uk/36893/ Earnings quality at initial public offerings in China REN, Shaohong This paper examines earnings management during IPO process in the Chinese context. Disagreeing with previous research, this study finds that IPO firms are not motivated to manage earnings upward before IPO. Managers are inclined to overstate the earnings of IPO year and these inflated earnings would be reversed after issuing. Those firms that conduct more aggressive earnings management at IPO year are more likely to experience post-issue accounting performance deterioration. Two of CSRC regulations are tested to investigate whether they could influence earnings management before IPO or not. The results indicate that the minimum net income requirement may no longer be a motivation of pre-IPO earnings management and the intangible assets proportion limitation could constrain earnings management through R&D to some extent. 2016-09-15 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36893/1/dissertation.pdf REN, Shaohong (2016) Earnings quality at initial public offerings in China. [Dissertation (University of Nottingham only)] initial public offering; earnings quality; earnings management; CSRC regulation |
| spellingShingle | initial public offering; earnings quality; earnings management; CSRC regulation REN, Shaohong Earnings quality at initial public offerings in China |
| title | Earnings quality at initial public offerings in China |
| title_full | Earnings quality at initial public offerings in China |
| title_fullStr | Earnings quality at initial public offerings in China |
| title_full_unstemmed | Earnings quality at initial public offerings in China |
| title_short | Earnings quality at initial public offerings in China |
| title_sort | earnings quality at initial public offerings in china |
| topic | initial public offering; earnings quality; earnings management; CSRC regulation |
| url | https://eprints.nottingham.ac.uk/36893/ |