Determinants of Management Earnings Forecasts: The Case of Global Shipping IPOs

European Financial Management, 23, 2017, pp 975-1015

48 Pages Posted: 25 Feb 2012 Last revised: 24 Sep 2018

See all articles by Wolfgang Drobetz

Wolfgang Drobetz

University of Hamburg

Dimitrios Gounopoulos

University of Bath

Andreas G. Merikas

University of Piraeus

Anna Merika

American College of Greece (DEREE)

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2016

Abstract

Companies that go public on global stock markets are not obliged to disclose earnings forecasts in their prospectuses. We use this fact to examine the shipping sector, where most firms issue earnings forecasts during the IPO process, and provide unique, international-level evidence. We find overall pessimistic forecasts of ship owners, primarily because of the maritime sector’s uncertain and volatile environment. High ship owner participation after going public is associated with less accurate earnings forecasts. The evidence further indicates that financial leverage, a listing in an emerging stock market, and global market conditions are the main factors responsible for inaccurate earnings forecasts.

Keywords: Earnings management, voluntary disclosure environment, forecast accuracy, IPOs

JEL Classification: D82, G14, G32, M41

Suggested Citation

Drobetz, Wolfgang and Gounopoulos, Dimitrios and Merikas, Andreas G. and Merika, Anna, Determinants of Management Earnings Forecasts: The Case of Global Shipping IPOs (December 1, 2016). European Financial Management, 23, 2017, pp 975-1015 . Available at SSRN: https://ssrn.com/abstract=2010791 or http://dx.doi.org/10.2139/ssrn.2010791

Wolfgang Drobetz

University of Hamburg ( email )

Moorweidenstrasse 18
Hamburg, 20148
Germany

Dimitrios Gounopoulos (Contact Author)

University of Bath ( email )

School of Management,
Wessex House, Claverton Down
Bath, BA2 7AY
United Kingdom

Andreas G. Merikas

University of Piraeus ( email )

Piraeus, LA
Greece

Anna Merika

American College of Greece (DEREE) ( email )

Gravias 6,
Aghia Paraskevi
Athenes, 153-42
Greece

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