Publication Type

Master Thesis

Publication Date

2010

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.

Keywords

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

Degree Awarded

MSc in Finance

Discipline

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

Supervisor(s)

Jerry Cao

Copyright Owner and License

#08-02, Blk 104, Donghe Garden, Wuxi, China 214000

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