𝔖 Bobbio Scriptorium
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Earnings smoothing and the underpricing of seasoned equity offerings

✍ Scribed by Duc Ngo, Anh; Varela, Oscar


Book ID
121006673
Publisher
Emerald Group Publishing Limited
Year
2012
Tongue
English
Weight
152 KB
Volume
38
Category
Article
ISSN
0307-4358

No coin nor oath required. For personal study only.


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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