|
|||||
|
|
Firm diversification and earnings management: evidence from seasoned equity offerings |
|||
| Authors: | Chee Yeow Lim Tiong Yang Thong David K Ding | ||
| Institution: | (1) Nanyang Business School, Nanyang Technological University, Singapore, 639798, Singapore;(2) School of Business, SIM University, Singapore, 599491, Singapore;(3) Department of Finance, Lee Kong Chian School of Business, Singapore Management University, 50 Stamford Road, Singapore, 178899, Singapore | ||
| Abstract: | Popular press suggests that diversified firms are more aggressive in managing earnings than non-diversified firms. We examine
this claim in the seasoned equity offering (SEO) setting, where firms have been shown to have the incentive to manage earnings
upwards. Using the cross-sectional modified Jones (1991) J Accounting Res 29:193–228] model to measure discretionary current accruals, we find that discretionary current accruals
are higher among diversified firms than in non-diversified ones. Our evidence is consistent with the view that the extent
of firm diversification is directly related to the degree of earnings management. We further show that diversified issuers
with high discretionary accruals underperformed other SEO firms.
|
||
| Keywords: | Seasoned equity offerings Corporate diversification Earnings management Accruals Stock market performance | ||
| 本文献已被 SpringerLink 等数据库收录！ | |||
