Suchergebnisse

Standards and conceptual issues -- Fair value and the conceptual framework -- Fair value accounting : a standard setting perspective -- Have the standard setters gone too far, or not far enough, with fair value accounting? -- Shareholder value, financialization and accounting regulation : making sense of fair value adoption in the European Union -- Fair value, risk and financial crisis -- Measuring fair value when markets malfunction : evidence from the financial crisis -- Fair value accounting in financial institutions -- Bank risk management : and fair value accounting -- The use of fair value accounting in risk management in non-financial firms -- Development (or other title) -- The history of the fair value term and its measurements -- The "fairness" of fair value accounting : marking-to-market, marking-to-model, and financial reporting management -- Let the fox guard the henhouse : how relaxing the three-level fair value hierarchy increases the reliability of fair value estimates -- Specific topics -- Fair value accounting : a manager's perspective -- Tax related implications of fair value accounting -- Fair value accounting and executive compensation -- Fair value and the formation of financial market prices through ignorance and hazard -- Fair value accounting : China experience -- Fair values and family firms -- Index

Using a large sample of domestic and foreign IPOs in the US, we investigate how threats of enforcement by the Securities and Exchange Commission (SEC) and private litigation influence earnings management in IPO prospectuses. We propose that perceptions of foreign institutions may influence SEC enforcement action and private litigation. We provide evidence that enforcement and litigation threats are negatively related to the strength of legal institutions in the foreign IPO's country of origin. We find earnings management is more pronounced in foreign IPOs from countries with strong legal institutions. We further explore whether earnings management is priced in the IPO market and find no relation between IPO proceeds and earnings management. Our results are consistent with upward earnings management as in Stein (1989), the magnitude of which is reduced when the anticipated cost of enforcement and litigation is higher. Collectively, our results cast doubt on the validity of the bonding hypothesis.