Earnings Management, Buyout Group Reputation and Post-offering Long-Run Stock Performance of Reverse LBOs
Publication Type
Master Thesis
Version
publishedVersion
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, Going public (Securities)
Degree Awarded
MSc in Finance
Discipline
Corporate Finance | Finance and Financial Management
Supervisor(s)
CAO, Jerry
First Page
1
Last Page
38
Publisher
Singapore Management University
City or Country
Singapore
Citation
ZHOU, Teng Yinzi.
Earnings Management, Buyout Group Reputation and Post-offering Long-Run Stock Performance of Reverse LBOs. (2010). 1-38.
Available at: https://ink.library.smu.edu.sg/etd_coll/237
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.