The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan

Volume: 5 Number: 2 June 1, 2015
  • Ming-Feng Hsu
  • Shiow-Ying Wen
EN

The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan

Abstract

This paper examines the influence of the proportion and stability of insider’s and institutional shareholdings on earnings management after initial public offerings (IPOs) firms in Taiwan, covering data in Taiwan Stock Exchange and GreTai Securities Market from 2000 to 2009. We apply performance-matched discretionary accruals and performance-matched real earnings management as dependent variables to depicting earnings management behavior. The empirical findings show that managers with unstable high shareholdings tend to perform accruals management to fit the threshold in the second year and the third year after IPOs. Further, institutional investors with unstable high shareholdings incline to courage firms to manipulate discretionary accruals for short-term trading profits in all three years after IPOs.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Ming-Feng Hsu This is me

Shiow-Ying Wen This is me

Publication Date

June 1, 2015

Submission Date

June 1, 2015

Acceptance Date

-

Published in Issue

Year 2015 Volume: 5 Number: 2

APA
Hsu, M.-F., & Wen, S.-Y. (2015). The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan. International Journal of Economics and Financial Issues, 5(2), 340-353. https://izlik.org/JA88PB77FP
AMA
1.Hsu MF, Wen SY. The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan. IJEFI. 2015;5(2):340-353. https://izlik.org/JA88PB77FP
Chicago
Hsu, Ming-Feng, and Shiow-Ying Wen. 2015. “The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan”. International Journal of Economics and Financial Issues 5 (2): 340-53. https://izlik.org/JA88PB77FP.
EndNote
Hsu M-F, Wen S-Y (June 1, 2015) The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan. International Journal of Economics and Financial Issues 5 2 340–353.
IEEE
[1]M.-F. Hsu and S.-Y. Wen, “The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan”, IJEFI, vol. 5, no. 2, pp. 340–353, June 2015, [Online]. Available: https://izlik.org/JA88PB77FP
ISNAD
Hsu, Ming-Feng - Wen, Shiow-Ying. “The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan”. International Journal of Economics and Financial Issues 5/2 (June 1, 2015): 340-353. https://izlik.org/JA88PB77FP.
JAMA
1.Hsu M-F, Wen S-Y. The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan. IJEFI. 2015;5:340–353.
MLA
Hsu, Ming-Feng, and Shiow-Ying Wen. “The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan”. International Journal of Economics and Financial Issues, vol. 5, no. 2, June 2015, pp. 340-53, https://izlik.org/JA88PB77FP.
Vancouver
1.Ming-Feng Hsu, Shiow-Ying Wen. The Roles of Institutional Investors and Insiders in Earnings Management Around IPO Firms in Taiwan. IJEFI [Internet]. 2015 Jun. 1;5(2):340-53. Available from: https://izlik.org/JA88PB77FP