Earnings Management and Initial Public Offerings: The Case of the Depository Industry. Brian Adams Kenneth Carow Tod Perry Presentation Prepared for the FDIC Center for Financial Research Washington, DC October 25, 2006. Earnings Management.
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Earnings Management and Initial Public Offerings:The Case of the Depository Industry
Brian AdamsKenneth CarowTod Perry
Presentation Prepared for the
FDIC Center for Financial Research
Washington, DC October 25, 2006
“Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers.” [Healy and Wahlen (1999)]
Incentives to affect Offer Price