Largest Shareholder Ownership and Downward Real-activity Earnings Management in Korean Seasoned Equity Offerings Firms
- 주제(키워드) Seasoned equity offering , Real-activity earnings management , Largest shareholders
- 주제(기타) Business, Finance
- 설명문(일반) [Kim, Su-In] Hanyang Womens Univ, Dept Tax & Accounting, Seoul, South Korea; [Byun, Jin-Ho] Ewha Womans Univ, Coll Business Adm, Seoul, South Korea; [Shin, Hye-Jeong] Kyonggi Univ, Dept Business Adm, Suwon 16227, Kyonggi Do, South Korea
- 등재 SSCI, SCOPUS, KCI등재
- 발행기관 WILEY
- 발행년도 2018
- URI http://www.dcollection.net/handler/ewha/000000156031
- 본문언어 영어
- Published As http://dx.doi.org/10.1111/ajfs.12224
- 저작권 이화여자대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
We investigate whether firms' real-activity earnings management (REM) around seasoned equity offerings (SEOs) and stock return performance after SEOs are different for the largest shareholders' participation in SEOs. Using Korean firms, we find that an increase in the largest shareholders' ownership is negatively related to REM in the quarters preceding an SEO. Additionally, positive market responses to SEO with the largest shareholders' ownership increases are mitigated by the level of REM. We conclude that firms manage earnings in favor of the largest shareholders rather than other existing shareholders.
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