The importance of bottom line of income statement has a long and supported history. Earnings is the base of so many contracts and therefore takes attention of lots of stakeholders. The management is among these stakeholders and based on positive accounting theory this number means a lot for him. Accordingly, it’s expected that this participant directs earnings towards his/her interests. One of management interests is to overprice the company’s IPO. However, it should be considered that managements of other companies also have some incentives to manage their earnings. In the following study we examined earnings management in IPO firms in contrast to the other firms. In this way, we used Kothari performance-match model. The results shows that there is no significant difference between these two groups. In other words, overpricing incentive in contrast to other earnings management incentives has no more weight.
Nikbakht, M. R., Taheri, M., & Ghaznavi, M. (2015). Examining Earnings Management in IPO Firms in Contrast to the Other Firms: Evidence from Tehran Stock Exchange. Accounting and Auditing Research, 7(28), 4-17. doi: 10.22034/iaar.2015.103772
MLA
Mohammad Reza Nikbakht; Masoud Taheri; MohammdSadegh Ghaznavi. "Examining Earnings Management in IPO Firms in Contrast to the Other Firms: Evidence from Tehran Stock Exchange". Accounting and Auditing Research, 7, 28, 2015, 4-17. doi: 10.22034/iaar.2015.103772
HARVARD
Nikbakht, M. R., Taheri, M., Ghaznavi, M. (2015). 'Examining Earnings Management in IPO Firms in Contrast to the Other Firms: Evidence from Tehran Stock Exchange', Accounting and Auditing Research, 7(28), pp. 4-17. doi: 10.22034/iaar.2015.103772
VANCOUVER
Nikbakht, M. R., Taheri, M., Ghaznavi, M. Examining Earnings Management in IPO Firms in Contrast to the Other Firms: Evidence from Tehran Stock Exchange. Accounting and Auditing Research, 2015; 7(28): 4-17. doi: 10.22034/iaar.2015.103772
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