Please use this identifier to cite or link to this item:
Earnings Quality and Media Attention around Seasoned Equity Offerings
There are no files associated with this item.
|Title:||Earnings Quality and Media Attention around Seasoned Equity Offerings|
real earnings management
accounting information quality
seasoned equity offerings
|Issue Date:||28 May 2017|
|Abstract:||This paper investigates how media coverage affects quality of accounting information for seasoned equity offering (SEO) firms. Media attention can either serve as a “watchdog” (watchdog hypothesis) and effectively reduce earnings management; or, alternatively, can create an extra pressure on managers putting them under spot so that managers try to fulfil market expectations and manage earnings (attention pressure hypothesis). We consider two types of earnings management: accrual earnings management, and real earnings management. Using a sample of SEOs from 1993 to 2014, we find that media serves as a watchdog for real earnings management, but does not affect accrual manipulations. Our findings hold after we control for endogenous factors affecting firms’ earnings management choices, and when we use alternative time periods for media coverage. This paper is the first to demonstrate that media attention affects the quality of accounting information during equity offerings as it successfully reduces real earnings management.|
|Description:||Inquiries about this document can be made to HARC@hawaii.edu|
|Appears in Collections:||11 Financial: Financial Reporting Quality / Credit Ratings / Earnings Smoothing / Earnings Comparability (FAR3)|
Please contact email@example.com if you need this content in an ADA compliant alternative format.
Items in ScholarSpace are protected by copyright, with all rights reserved, unless otherwise indicated.