Earnings and Cash Flows Behaviour in Indonesian Initial Public Offerings  

Oleh:

Irawan, M. Adi ; Gumanti, Tatang Ary ; Manik, Ester

Jenis: Article from Journal - ilmiah nasional - terakreditasi DIKTI
Dalam koleksi: Ekuitas: Jurnal Ekonomi dan Keuangan vol. 17 no. 01 (Mar. 2013), page 054-070.
Topik: IPOs; prospektus; laba; aliran kas dari aktivitas operasi; IPOs; prospectus; earnings; cash flows from operations
Fulltext: 20140124011_SA.pdf (210.38KB)

Isi artikel

Initial public offerings (IPOs) offer a fruitful area to be explored given the existence of asymmetric information among various parties interested in the IPO. One of the issues pertaining in the IPO setting is the presumed existence of earnings management practice (Teoh et al., 1998). In this case, there seems to be strong incentives of the owners of the firm to make financial performance of the firm look better in the periods before the offering. This study attempts to examine whether there is significant increase in earnings level prior to the offering to be interpreted as the existence of earnings management. The behaviour of cash flow from operation is also examined. A sample of 35 Indonesian IPOs that made public during 2002-2005 periods was examined. The t-test for mean difference was performed to test whether earnings is different. The findings show that earnings level tends to increase in the year closes to the IPO date, but decrease in the next two years after that. The behaviour of cash flows from operating activities is almost similar. However, this study is unable to state that earnings management is strongly evidenced in Indonesian IPO settings.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali