Accounting accruals, earnings management and future performance of IPOs

Accounting accruals, earnings management and future performance of IPOs

Author: 
Omidian, Meisam
Publisher: 
Inderscience
Date published: 
2016
Record type: 
Responsibility: 
Nakhaei, Habibollah, jt. author
Nakhaei,Karim, jt. author
Journal Title: 
African Journal of Accounting, Auditing and Finance
Source: 
African Journal of Accounting, Auditing and Finance, Vol. 5, No. 1, pp. 25-37
Subject: 
Abstract: 

This paper investigates the impact of public-listing age on the future operating performance of Iranian firms making initial public offerings (IPOs) during the period 2003 to 2014, and examines whether accounting accruals and earning management contribute to this impact. In addition, return on net operating assets (RNOA), operational accruals (TAC) and the earnings management (EM) of 81 initial public offerings have been calculated, with the aim of helping capital market participants, policy makers, financial analysts and potential investors thorough the findings of this study, in the stock exchange of financial assets and security investment projects. Multivariate linear regression was used in analysing data. We found that, on average, public-listing age and accounting accruals have a direct effect on future operating performance in Iran, and that earning management does play an indirect role on performance.

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Country focus: 

CITATION: Omidian, Meisam. Accounting accruals, earnings management and future performance of IPOs . : Inderscience , 2016. African Journal of Accounting, Auditing and Finance, Vol. 5, No. 1, pp. 25-37 - Available at: http://library.au.int/accounting-accruals-earnings-management-and-future-performance-ipos-1