Studying Earnings Management in Initial Public Offerings (IPOs) and its Impact on IPO Pricing in India

28 Pages Posted: 3 Sep 2012

See all articles by Alok Pande

Alok Pande

Government of India; Indian Institute of Management (IIMB), Bangalore

Date Written: March 30, 2009

Abstract

Earnings Management by firms has been recognized by a stream of literature (Teoh et aI, 1998) as a major contributory factor to the short run over performance and long run under performance of Initial Public Offerings (IPOs).This paper outlines the methodology and the key research questions to be adopted for studying Earnings Management for Indian IPOs. The study tries to outline how to empirically test the relationship of the accounting concept of Earnings Management with the Finance concept of IPO under pricing. In particular it seeks to find out whether there is evidence in the Indian markets about earnings management during IPOs and if so then the impact of this phenomenon on the first day prices of the shares offered during IPOs in India.

Keywords: earnings management, IPO, underpricing

Suggested Citation

Pande, Alok, Studying Earnings Management in Initial Public Offerings (IPOs) and its Impact on IPO Pricing in India (March 30, 2009). IIM Bangalore Research Paper No. 284, Available at SSRN: https://ssrn.com/abstract=2138717 or http://dx.doi.org/10.2139/ssrn.2138717

Alok Pande (Contact Author)

Government of India ( email )

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

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