Publication Type

Master Thesis

Abstract

This paper examines earnings management of private equity-backed IPOs around security offerings in a comprehensive sample of Reverse LBOs between 1981 and 2006. These RLBO companies are found to have positive level of discretionary current accruals (DCAs) at a much smaller magnitude compared to other IPOs. Buyout group's size is negatively related with the level of DCAs, suggesting that PE reputation mitigates accounting manipulations. Furthermore, PE reputation rather than earnings management can explain post-offering performance of RLBO companies.

Year Dissertation/Thesis Completed

2010

Keywords

reverse leveraged buyouts, earnings management, buyout group reputation, financial performance

Discipline

Corporate Finance | Finance and Financial Management | Portfolio and Security Analysis

Degree Awarded

Master of Science in Finance

Supervisor(s)

Jerry Cao

School

Lee Kong Chian School of Business

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