EARNINGS MANAGEMENT AND INITIAL PUBLIC OFFERING

Mayantya, Pasthika Dirda (2018) EARNINGS MANAGEMENT AND INITIAL PUBLIC OFFERING. S1 thesis, UAJY.

Text (Pasthika Dirda Mayantya) EAI19999.pdf Restricted to Repository staff only Download (3MB)

Abstract

Go public is one way of the companies (the company is still being developed) to obtain additional funds in order to finance the business expansion. Therefore, in order for the offered-shares to be absorbed by the market, the owner of the company is required to be able to show that his company has prospects.One of the requirements set by the capital market supervisor for a company that will conduct an initial public offering (IPO) is a prospectus document (Gumanti, 2000). The prospectus contains information about the securities issuer company and other information relates to the securities sold (Hartono, 2000). The limited information that is disclosed in the prospectus will also lead to an imbalance of information. The imbalance of information that owned by the company with the outside parties can be referred as asymmetric information.Asymmetric information that occurs between agents and principal can lead to an opportunity for agents to do earnings management in the company, because with the more agent has the information than principal, then the agent can easily manipulate the information in the company. From that situation, earnings management will occur. This research is intended to examine whether earnings management before and after the Initial Public Offering has significant changes or not and prove that empirically earnings management higher before the Initial Public Offering, or it can be said that earnings management is lower after the Initial Public Offering.This research is done in all companies that in the year 2009-2014 has conducted the Initial Public Offering (IPO). The result of this research shows thatearnings management after the Initial Public Offering is lower after the Initial Public Offering. Companies tend to perform earnings management lower after the IPO, because the company does not want the investors know if the company performs earnings management.

Actions (login required)

View Item