Manajemen Laba pada Periode Initial Public Offering dan Dampaknya pada Persistensi Laba
Abstract
The paper examinse whether Indonesian corporations manage their earnings through real activities and accrual accounting during their initial public offerings. We also investigate the effect of this IPO earnings management on earnings persistence in the subsequent period. Seventy-three non-financial IPOs during 2014-2017 were taken as research sample. Afer a series of statistical analyses, we find that companies that went public committed both real and accrual earnings management to inflate income figures in their IPO year. Furthermore, we also find that accrual earnings management negatively affects earning persistence, whereas real earnings management positively affects earnings persistence.
Keywords: IPO; Earnings Management; Earnings Persistence, Go Public.
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References
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Alhadab, M. M. (2018). Real and accrual earnings management around initial public offerings in Jordan. International Business Research, 11(1), 2014–2216.
Atwood, T. J., Drake, M. S., & Myers, L. A. (2010). Book-tax conformity, earnings persistence and the association between earnings and future cash flows. Journal of Accounting and Economics, 50(1), 111–125.
Ball, R., & Shivakumar, L. (2008). Earnings quality at initial public offerings. Journal of Business Finance and Accounting, 45(2–3), 324–349.
Brau, J. C., & Fawcett, S. E. (2006). Initial public offerings: An analysis of theory and practice. The Journal of Finance, 61(1), 399–436.
Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics, 50(1), 2–19.
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting & Economics, 50(2–3), 344–401.
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting Earnings Management. The Accounting Review, 70(2), 193–225.
DeFond, M. L. (2010). Earnings quality research: Advances, challenges and future research. Journal of Accounting and Economics, 50(2–3), 402–409.
Ernst and Young. (2019). Global IPO trends: Q3 2019. https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/ipo/ey-quarterly-ipo-trends-2019-q3.pdf
Ertimur, Y., Sletten, E., & Sunder, J. (2014). Large shareholders and disclosure strategies: Evidence from IPO lockup expirations. Journal of Accounting and Economics, 58(1), 79–95.
Ertimur, Y., Sletten, E., Sunder, J., & Weber, J. (2018). When and why do IPO firms manage earnings? Review of Accounting Studies, 23(3), 872–906.
Field, L. C., & Hanka, G. (2001). The expiration of IPO share lockups. Journal of Finance. 56(2), 471–500.
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting 3-73. Journal of Accounting & Economics, 40(1–3), 3–73.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency cost, and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Kedia, S., Rajgopal, S., & & Zhou, X. (2017). Large shareholders and credit ratings. Journal of Financial Economics, 124(3), 632–653.
Kothari, S. P., Mizik, N., & Roychowdhury, S. (2016). Managing for the moment: The role of earnings management via real activities versus accruals in SEO valuation. The Accounting Review, 91(2), 559–586.
Li, V. (2019). The effect of real earnings management on the persistence and informativeness of earnings. The British Accounting Review, 51(4), 402–423.
Lipe, R. (1990). The relation between stock returns and accounting earnings given alternative formation. Accounting Review, 65(1), 49–71.
Meini, Z., & Siregar, S. V. (2014). The effect of accrual earnings management and real earnings management on earnings persistence and cost of equity. Journal of Economics, Accountancy Ventura, 17(2), 269–280.
Premti, A. (2013). Earnings management prior to initial public offerings and its effect on firm performance: International evidence. International Journal of Financial Research, 4(3), 10–24.
Rajizadeh, S., & Rajizadeh, S. (2013). Examining the factors affecting earnigns persistency among the listed firms in Tehran Stock Exchange. European Online Journal of Natural and Social Sciences, 2(3), 2073–2079.
Ritter, J. (1991). The long-run performance of initial public offerings. The Journal of Finance, 46(1), 3–27.
Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370.
Scott, W. R. (2015). Financial Accounting Theory, 7th Edition. Pearson.
Subramanian, A., & Nilakanta, S. (1996). Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance. Omega, 24(6), 631–647.
Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings management and the long-run market performance of initial public offerings. Journal of Finance, 53(6), 1935–1974.
Widyaningtyas, A. P. (2009). Manajemen laba sebelum initial public offering [Universitas Sanata Dharma]. https://repository.usd.ac.id/15780/
Alhadab, M. M. (2018). Real and accrual earnings management around initial public offerings in Jordan. International Business Research, 11(1), 2014–2216.
Atwood, T. J., Drake, M. S., & Myers, L. A. (2010). Book-tax conformity, earnings persistence and the association between earnings and future cash flows. Journal of Accounting and Economics, 50(1), 111–125.
Ball, R., & Shivakumar, L. (2008). Earnings quality at initial public offerings. Journal of Business Finance and Accounting, 45(2–3), 324–349.
Brau, J. C., & Fawcett, S. E. (2006). Initial public offerings: An analysis of theory and practice. The Journal of Finance, 61(1), 399–436.
Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics, 50(1), 2–19.
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting & Economics, 50(2–3), 344–401.
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting Earnings Management. The Accounting Review, 70(2), 193–225.
DeFond, M. L. (2010). Earnings quality research: Advances, challenges and future research. Journal of Accounting and Economics, 50(2–3), 402–409.
Ernst and Young. (2019). Global IPO trends: Q3 2019. https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/ipo/ey-quarterly-ipo-trends-2019-q3.pdf
Ertimur, Y., Sletten, E., & Sunder, J. (2014). Large shareholders and disclosure strategies: Evidence from IPO lockup expirations. Journal of Accounting and Economics, 58(1), 79–95.
Ertimur, Y., Sletten, E., Sunder, J., & Weber, J. (2018). When and why do IPO firms manage earnings? Review of Accounting Studies, 23(3), 872–906.
Field, L. C., & Hanka, G. (2001). The expiration of IPO share lockups. Journal of Finance. 56(2), 471–500.
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting 3-73. Journal of Accounting & Economics, 40(1–3), 3–73.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency cost, and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Kedia, S., Rajgopal, S., & & Zhou, X. (2017). Large shareholders and credit ratings. Journal of Financial Economics, 124(3), 632–653.
Kothari, S. P., Mizik, N., & Roychowdhury, S. (2016). Managing for the moment: The role of earnings management via real activities versus accruals in SEO valuation. The Accounting Review, 91(2), 559–586.
Li, V. (2019). The effect of real earnings management on the persistence and informativeness of earnings. The British Accounting Review, 51(4), 402–423.
Lipe, R. (1990). The relation between stock returns and accounting earnings given alternative formation. Accounting Review, 65(1), 49–71.
Meini, Z., & Siregar, S. V. (2014). The effect of accrual earnings management and real earnings management on earnings persistence and cost of equity. Journal of Economics, Accountancy Ventura, 17(2), 269–280.
Premti, A. (2013). Earnings management prior to initial public offerings and its effect on firm performance: International evidence. International Journal of Financial Research, 4(3), 10–24.
Rajizadeh, S., & Rajizadeh, S. (2013). Examining the factors affecting earnigns persistency among the listed firms in Tehran Stock Exchange. European Online Journal of Natural and Social Sciences, 2(3), 2073–2079.
Ritter, J. (1991). The long-run performance of initial public offerings. The Journal of Finance, 46(1), 3–27.
Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370.
Scott, W. R. (2015). Financial Accounting Theory, 7th Edition. Pearson.
Subramanian, A., & Nilakanta, S. (1996). Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance. Omega, 24(6), 631–647.
Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings management and the long-run market performance of initial public offerings. Journal of Finance, 53(6), 1935–1974.
Widyaningtyas, A. P. (2009). Manajemen laba sebelum initial public offering [Universitas Sanata Dharma]. https://repository.usd.ac.id/15780/
Published
2020-11-28
How to Cite
HALIM, Hansen; PANGESTU, Stevanus.
Manajemen Laba pada Periode Initial Public Offering dan Dampaknya pada Persistensi Laba.
E-Jurnal Akuntansi, [S.l.], v. 30, n. 11, p. 2922 - 2940, nov. 2020.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/61512>. Date accessed: 16 dec. 2024.
doi: https://doi.org/10.24843/EJA.2020.v30.i11.p16.
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