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Ethics And Disclosure: A Study Of The Financial Performance Of Firms In The Seasoned Equity Offerings Market, Hoje Jo, Yongtae Kim
Ethics And Disclosure: A Study Of The Financial Performance Of Firms In The Seasoned Equity Offerings Market, Hoje Jo, Yongtae Kim
Accounting
In this article, we examine the association between ethics and disclosure and the impact of this association on the long-term, post-issue performance of seasoned equity offerings (SEOs). We argue that firms with extensive disclosure are less likely to face information problems, and more likely to lead to active shareholder monitoring, and therefore, engage in fewer unethical activities, such as aggressive earnings manipulation, and have better long-term, post-issue performance. Consistent with these predictions, this study presents evidence that disclosure is negatively related to unethical earnings manipulation and positively associated with long-term, post-issue performance. In particular, we find that long-term, post-issue SEO …
Disclosure Frequency And Earnings Management, Hoje Jo, Yongtae Kim
Disclosure Frequency And Earnings Management, Hoje Jo, Yongtae Kim
Accounting
We examine the relation between disclosure frequency and earnings management,and the impact of this relation on post-issue performance, for a sample of seasoned equityofferings (SEOs). We contend that firms with extensive disclosure are less likely to faceinformation problems, leading to less earnings management and better post-issueperformance. Our results confirm that disclosure frequency is inversely related toearnings management and positively associated with post-issue performance. We alsofind that transparency-reducing disclosure is concentrated in firms that substantially, buttemporarily, increase disclosure prior to the offering. Such firms exhibit more earningsmanagement and poorer post-SEO stock performance, on average.JEL classification:G14; G24; G32; M41
Underwriter Choice And Earnings Management: Evidence From Seasoned Equity Offerings, Hoje Jo, Yongtae Kim, Myung Seok Park
Underwriter Choice And Earnings Management: Evidence From Seasoned Equity Offerings, Hoje Jo, Yongtae Kim, Myung Seok Park
Accounting
Using a sample of seasoned equity offerings (SEOs), this paper examines the association between the choice of financial intermediary and earnings management. We contend that with more stringent standards for certification and intense monitoring, highly prestigious underwriters restrict firms' incentives for earnings management to protect their reputation and to avoid potential litigation risks, while firms with greater incentives for earnings management avoid strict monitoring by choosing low-quality underwriters. Consistent with our predictions, we find an inverse association between underwriter quality and issuers' earnings management. In addition, we find that underwriter quality is positively related to SEOs' post-issue performance, even after …