Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Examine IPO accounting data more delicately when firms go public in the bear market periods.
That is the advice of Jaemin Cho and Jaeho Lee in ‘IPOs, Earnings Management, and Venture Capital: Evidence in Bull and Bear Market Conditions’ ( >www.ssrn.com). Reason: “VCs may support inflating firms’ earnings opportunistically in order to exit their ownership positions in the IPO year, especially in the bear market period.”
The authors take up the argument that VCs have a significant influence on financial reporting practices in the IPO process for harvesting, and find evidence that VCs have incentives to inflate their IPOs’ earnings for exit and that earnings management could be deepened by market condition.
The study is based on the data of 598 IPO firms from the Korean Securities Dealers Automated Quotation (KOSDAQ) from 2001 to 2009. KOSDAQ is a secondary stock market of South Korea that consists of relatively younger, smaller, and technology-based firms, one learns. The reasoning behind the choice of the sample is that the information asymmetry problem is believed to be more severe in KOSDAQ than in the Korea Stock Exchange (KSE), the IPO regulations being less stringent for the former. The authors are, therefore, of the view that it is more likely for IPO companies listed in KOSDAQ to have a stronger motivation to manage earnings using this “window of information asymmetry.”
Insights of value to demystify IPO performance.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
With initial public offerings galore, we give you a cheat sheet to score some good grades
Biggest risk in selling funds in a rising scenario is exiting early and missing out on further gains
Go for a standard vector-borne diseases policy if you don’t have a regular health plan
No credit risk is an attraction, but note the nuances
After facing severe droughts for several years, farmers in western Maharashtra have turned the corner through ...
A toast to a traditional drip irrigation system still going strong in the Northeast
Raza Mir’s ‘Murder at the Mushaira’ works well as a historical novel that captures the sunset years of the ...
If you see garbage lying on the streets, remove it, says a dedicated plogger on a clean-up drive
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor