Accounting Accruals,Future Operating Performance,and Public-Listing Age |
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Authors: | Lin Huang Yan Shu |
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Institution: | Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China |
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Abstract: | This paper investigates the impact of public-listing age on the future operating performance of Chinese firms making initial public offerings (IPOs) during the period 1998-2010 and examines whether accounting accruals contribute to this impact. We found that, on average, public-listing age has a negative incremental effect on future operating performance in China and that accounting accruals do play a role in postissue underperformance. However, our industrial analysis reveals that the listing-age effect does not persist in industry-specific models; this implies that listing age has heterogeneous effects on post-IPO operating performance and that these effects deserve further attention. |
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Keywords: | accounting accruals future operating performance industrial heterogeneity initial public offering |
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