Underwriter reputation, issuer ownership, and pre-lpo earnings management: : Evidence from China.

• Autores: Chao Chen, Haina Shi, Haoping Xu
• Localización: Financial management, ISSN 0046-3892, Vol. 42, Nº 3, 2013, págs. 647-677
• Idioma: inglés
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• Resumen

  • This paper investigates the correlation between pre-initial public offering (pre-IPO) earnings management and underwriter reputation for issuers with different ownership structures in China. We document a significantly inverse relationship between underwriter reputation and pre-IPO earnings management for non-state-owned enterprises (NSOE) issuers only, while no significant association is found for state-owned enterprises (SOE) issuers. We also find that for the NSOE new issue market, underwriter reputation is positively correlated with issuer post-IPO performance indicating that prestigious underwriters can incrementally improve issuer post-IPO performance. [ABSTRACT FROM AUTHOR]