Going-concern initial public offerings

• 成果类型: Article
• 署名作者: Willenborg, M; McKeown, JC
• 署名单位: University of Connecticut; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(01)00014-3
• 发表日期: 2000
• 关键词: QUALIFIED AUDIT OPINIONS; long-run performance; information-content; empirical-analysis; QUALIFICATIONS; returns; SUBJECT; issues; reputation; prices

摘要

We study the relation between audit reports and the capital-raising activities of small business by studying the role of going-concern (GC) audit opinions in IPOs. After controlling for other effects, we find that the presence of a GC opinion is positively related to whether a stock delists (for deleterious reasons) within two years of IPO. We also find that GC IPOs suffer less first-day underpricing. Based on Rock (1986), this implies that firms with GCs have less ex ante uncertainty in the sense that the information conveyed by a GC helps uninformed investors estimate the dispersion of secondary market values. (C) 2001 Elsevier Science B.V. All rights reserved.