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Earnings Management at Rights Issues Thresholds --Evidence from China - 孙谦
Burgstahler and Dichev (BD) (Burgstahler, David, Ilia, Dichev, 1997. Earnings management to
avoid earnings decreases and losses. Journal of Accounting and Economics 23(1), 99–126.) and
Degorge, Patel, and Zeckhauser (DPZ) (Degeorge, Franscois, Patel, Jayendu, Zeckhauser, Richard,
1999. Earnings management to exceed thresholds. Journal of Business 72(1), 1–33.) examine earnings
management among American firms by looking at actual distributions around critical thresholds.
Chinese firms must meet minimal ROE requirements if they are to have rights issues. Using a distribution
approach, we examine whether Chinese firms manipulate their earnings to meet the regulatory
requirements. Our empirical findings indicate that Chinese firms indeed heavily engaged in
earnings management to meet the...
(219333 bytes; application/pdf) - 31-dic-2008
2.
Determinants of Idiosyncratic Volatility for Biotech IPO Firms - 孙谦; Jay Inghwee Chok
In this paper we examine the cross-sectional determinants of idiosyncratic volatility of
biotech IPO firms. We extend current research in two directions. First, we test whether CEO
stock options impact on idiosyncratic volatility. Second, we test new hypotheses that relate
some easily identifiable managerial characteristics to idiosyncratic volatility. We find that the
CEO stock options, resource dependence capabilities, and the age of board members help
predict idiosyncratic volatility. Our results are robust for the various measures of
idiosyncratic volatility and model specifications.
(178053 bytes; application/pdf) - 31-dic-2008
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