Underwriter Reputation, Issuer Ownership, and Pre‐IPO Earnings Management: Evidence from China
研究中国不同所有权结构的企业在IPO前，承销商声誉与盈余管理的关系，发现非国有企业中两者显著负相关，且声誉好的承销商能提升其上市后业绩。
This paper investigates the correlation between pre‐initial public offering (pre‐IPO) earnings management and underwriter reputation for issuers with different ownership structures in China. We document a significantly inverse relationship between underwriter reputation and pre‐IPO earnings management for non‐state‐owned enterprises (NSOE) issuers only, while no significant association is found for state‐owned enterprises (SOE) issuers. We also find that for the NSOE new issue market, underwriter reputation is positively correlated with issuer post‐IPO performance indicating that prestigious underwriters can incrementally improve issuer post‐IPO performance.