Real Earnings Management and Governance Attributes in the Context of IPO Failure

49 Pages Posted: 16 Jan 2014

See all articles by Chalwati Amna

Chalwati Amna

The Hong Kong polytechnic University

Samir Trabelsi

Brock University - Accounting

Hamadi Matoussi

University of Manouba - Gestion

Date Written: January 15, 2014

Abstract

This study examines the association between real earnings management, governance attributes, and IPO failure risk. Using a sample of 4174 IPOs firms that went public over the period of 1998-2011, we find evidence that real earnings management and governance attributes are associated with IPO failure risk. Moreover, we find that among governance attributes, board independence and board size are negatively associated with IPO failure risk. However, audit committee independence and CEO duality are not related to the probability of IPO failure risk. This study contributes to the current hot debate around IPO failure risk factors.

Keywords: Real earnings management, IPO failure risk, Governance attributes

JEL Classification: G14, G24, G30, G32, G33, G34, G38, K22, M41, M42

Suggested Citation

Amna, Chalwati and Trabelsi, Samir and Matoussi, Hamadi, Real Earnings Management and Governance Attributes in the Context of IPO Failure (January 15, 2014). 2014 Canadian Academic Accounting Association (CAAA) Annual Conference. Available at SSRN: https://ssrn.com/abstract=2379696 or http://dx.doi.org/10.2139/ssrn.2379696

Chalwati Amna

The Hong Kong polytechnic University ( email )

Hong Kong, Manouba
Hong Kong
+12899900028 (Phone)

Samir Trabelsi (Contact Author)

Brock University - Accounting ( email )

St. Catharines, Ontario L2S 3A1
Canada

Hamadi Matoussi

University of Manouba - Gestion ( email )

Campus Universitaire de la Manouba
Manouba 2010, 2010
Tunisia
216-71-600 705 (Phone)
216-71-602 404 (Fax)

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