The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan
This paper examines the influence of the proportion and stability of insider’s and institutional shareholdings on earnings management after initial public offerings (IPOs) firms in Taiwan, covering data in Taiwan Stock Exchange and GreTai Securities Market from 2000 to 2009. We apply performance-mat...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2015-06-01
|
| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/31969/352132?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797907481466241024 |
|---|---|
| author | Ming-Feng Hsu Shiow-Ying Wen |
| author_facet | Ming-Feng Hsu Shiow-Ying Wen |
| author_sort | Ming-Feng Hsu |
| collection | DOAJ |
| description | This paper examines the influence of the proportion and stability of insider’s and institutional shareholdings on earnings management after initial public offerings (IPOs) firms in Taiwan, covering data in Taiwan Stock Exchange and GreTai Securities Market from 2000 to 2009. We apply performance-matched discretionary accruals and performance-matched real earnings management as dependent variables to depicting earnings management behavior. The empirical findings show that managers with unstable high shareholdings tend to perform accruals management to fit the threshold in the second year and the third year after IPOs. Further, institutional investors with unstable high shareholdings incline to courage firms to manipulate discretionary accruals for short-term trading profits in all three years after IPOs. |
| first_indexed | 2024-04-10T10:37:29Z |
| format | Article |
| id | doaj.art-323af160347b4fa1b7012dc1d9c54293 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:37:29Z |
| publishDate | 2015-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-323af160347b4fa1b7012dc1d9c542932023-02-15T16:20:46ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382015-06-01523403531032The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in TaiwanMing-Feng HsuShiow-Ying WenThis paper examines the influence of the proportion and stability of insider’s and institutional shareholdings on earnings management after initial public offerings (IPOs) firms in Taiwan, covering data in Taiwan Stock Exchange and GreTai Securities Market from 2000 to 2009. We apply performance-matched discretionary accruals and performance-matched real earnings management as dependent variables to depicting earnings management behavior. The empirical findings show that managers with unstable high shareholdings tend to perform accruals management to fit the threshold in the second year and the third year after IPOs. Further, institutional investors with unstable high shareholdings incline to courage firms to manipulate discretionary accruals for short-term trading profits in all three years after IPOs.https://dergipark.org.tr/tr/pub/ijefi/issue/31969/352132?publisher=http-www-cag-edu-tr-ilhan-ozturkinsiders institutional investors earnings management initial public offering |
| spellingShingle | Ming-Feng Hsu Shiow-Ying Wen The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan International Journal of Economics and Financial Issues insiders institutional investors earnings management initial public offering |
| title | The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan |
| title_full | The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan |
| title_fullStr | The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan |
| title_full_unstemmed | The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan |
| title_short | The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan |
| title_sort | roles of institutional investors and insiders in earnings management around ipo firms in taiwan |
| topic | insiders institutional investors earnings management initial public offering |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/31969/352132?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT mingfenghsu therolesofinstitutionalinvestorsandinsidersinearningsmanagementaroundipofirmsintaiwan AT shiowyingwen therolesofinstitutionalinvestorsandinsidersinearningsmanagementaroundipofirmsintaiwan AT mingfenghsu rolesofinstitutionalinvestorsandinsidersinearningsmanagementaroundipofirmsintaiwan AT shiowyingwen rolesofinstitutionalinvestorsandinsidersinearningsmanagementaroundipofirmsintaiwan |