Earnings management and the underperform
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Siew Hong Teoh; Ivo Welch; T.J. Wong
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Article
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1998
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Elsevier Science
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English
β 290 KB
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