Regulations, earnings management, and post-IPO performance: The Chinese evidence

摘要: In this study, we examine whether government regulatory initiatives in China involving IPO by SOEs may have contributed to opportunistic behaviors the issuer. We focus on two sets of regulations issued between January 1, 1996 and February 11, 1999: pricing regulations, which stipulate that prices be a function accounting performance, penalty penalize firms for overly optimistic forecasts. find report better pricing-period performance larger declines post-IPO profitability, lower first-day stock returns worse long-run performance. Furthermore, make overoptimistic forecasts also Using non-core earnings as proxy management, document some evidence higher engaged more income-increasing management. Hence, induced inflate affect negatively. On other hand, deterred from making forecast therefore positive impact behavior firms.