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Accounting Information And The Underpricing Of Indonesian Initial Public Offerings, Tatang Ary Gumanti
Accounting Information And The Underpricing Of Indonesian Initial Public Offerings, Tatang Ary Gumanti
Theses: Doctorates and Masters
The purpose of this study is to examine the relation between accounting measures of total firm risk and the magnitudes of IPO initial returns. The existing explanations of the underpricing of lPO's suggests that the extent of underpricing is positively related to ex ante uncertainty about the issues. This study argues that accounting risk measures are related to the ex ante uncertainty. Since ex ante uncertainty is positively related to IPO underpricing, accounting risk measures are also arguably related to IPO underpricing. An event methodology is employed in this study. Five accounting risk measures are examined: financial leverage, operating leverage, …
Earnings Management And Accounting Choices In Initial Public Offerings : Evidence From Indonesia, Tatang A. Gumanti
Earnings Management And Accounting Choices In Initial Public Offerings : Evidence From Indonesia, Tatang A. Gumanti
Theses: Doctorates and Masters
Information asymmetry about the value of the firm making initial public Offering and the potential investors exists. This thesis investigates whether issuers of initial public affairs (IPOs) use accounting discretion to increase the reported earnings through the choice of accounting methods. Anecdotal evidence •suggests that accounting numbers are used in the pricing of IPO. Further, there is an economic incentive for issuers of IPOs to sell the offering shares at the highest possible price which in tum increases their proceeds and thus their wealth. This suggests a prediction that, immediately prior to the offering, issuers exercise accounting discretion to increase …