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dc.contributor.authorSletten, Ewa
dc.contributor.authorErtimur, Yonca
dc.contributor.authorSunder, Jayanthi
dc.contributor.authorWeber, Joseph P
dc.date.accessioned2020-11-17T23:48:06Z
dc.date.available2020-11-17T23:48:06Z
dc.date.issued2018-05
dc.identifier.issn1380-6653
dc.identifier.issn1573-7136
dc.identifier.urihttps://hdl.handle.net/1721.1/128517
dc.description.abstractThere is significant disagreement about whether, when, and why IPO firms manage earnings. We precisely identify the timing and motives behind earnings management by IPO firms. The period around an IPO is characterized by two events: the IPO itself and the lockup expiration. Both the raising of capital at the IPO and the exit by pre-IPO shareholders at lockup expiration create incentives for firms to manage earnings. To disentangle the effect of these events, we examine quarterly, rather than annual, abnormal accruals. We find no evidence of income-increasing earnings management before the IPO. However, IPO firms exhibit positive abnormal accruals in the quarter before and the quarter of the lockup expiration. Positive abnormal accruals are concentrated in less scrutinized firms and firms with high selling by pre-IPO shareholders. Moreover, we find that these accruals subsequently reverse and that such reversals contribute to long-run IPO underperformance.en_US
dc.publisherSpringer Science and Business Media LLCen_US
dc.relation.isversionofhttps://doi.org/10.1007/s11142-018-9445-3en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourceSpringer USen_US
dc.titleWhen and why do IPO firms manage earnings?en_US
dc.typeArticleen_US
dc.identifier.citationSletten, Ewa et al. "When and why do IPO firms manage earnings?" Review of Accounting Studies 23, 3 (May 2018): 872–906. © 2018 Springer Science Business Media, LLCen_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Economicsen_US
dc.relation.journalReview of Accounting Studiesen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dc.date.updated2020-09-24T21:38:17Z
dc.language.rfc3066en
dc.rights.holderSpringer Science+Business Media, LLC, part of Springer Nature
dspace.embargo.termsY
dspace.date.submission2020-09-24T21:38:17Z
mit.journal.volume23en_US
mit.journal.issue3en_US
mit.licenseOPEN_ACCESS_POLICY
mit.metadata.statusComplete


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