Earnings Quality and International IPO Underpricing

• 成果类型: Article
• 署名作者: Boulton, Thomas J.; Smart, Scott B.; Zutter, Chad J.
• 署名单位: University System of Ohio; Miami University; Indiana University System; Indiana University Bloomington; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.00000018
• 发表日期: 2011
• 页码: 483-505
• 关键词: investor protection; Offer price; management; MARKET; FIRMS; performance; incentives; STANDARDS; issues; COSTS

摘要

This study examines the impact of country-level earnings quality on IPO underpricing. Examining 10,783 IPOs from 37 countries, we find that IPOs are underpriced less in countries where public firms produce higher quality earnings information. This finding persists after controlling for other deal-and country-specific factors that affect IPO underpricing, and it is driven neither by the large and relatively transparent markets in the U. S. and U. K. nor by the relatively opaque Japanese market. The impact of low earnings quality on underpricing is partially offset by the use of a top-tier under-writer.