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Accrual-based and real earnings management activities around seasoned equity offerings

โœ Scribed by Daniel A. Cohen; Paul Zarowin


Book ID
116591683
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
247 KB
Volume
50
Category
Article
ISSN
0165-4101

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Seasoned equity issuers can raise reported earnings by altering discretionary accounting accruals. We find that issuers who adjust discretionary current accruals to report higher net income prior to the offering have lower post-issue long-run abnormal stock returns and net income. Interestingly, the