Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs

The engagement of reputable underwriter and auditor by the listing firm is believed to provide a positive signal to the market, thus reducing the uncertainty surrounding the firm's value. Since audit quality is differentiated, some of the issuing firms switch to more reputable auditors durin...

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Bibliographic Details
Main Author:	Mahussin, Norlida
Format:	Thesis
Language:	English English
Published:	2003
Subjects:	Forecasting. Going public (Securities). Securities.
Online Access:	http://psasir.upm.edu.my/id/eprint/9272/1/GSM_2003_12.pdf
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id	my-upm-ir.9272
record_format	uketd_dc
spelling	my-upm-ir.92722024-02-19T02:13:55Z Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs 2003-11 Mahussin, Norlida The engagement of reputable underwriter and auditor by the listing firm is believed to provide a positive signal to the market, thus reducing the uncertainty surrounding the firm's value. Since audit quality is differentiated, some of the issuing firms switch to more reputable auditors during listing to increase the credibility of the financial information in the prospectus. The disclosure of earnings forecast in the prospectus is also perceived to provide information that could reduce the uncertainty. However, evidence from previous studies on these issues is inconclusive. This study investigates the effect of underwriter reputation, auditor choice and auditor switch during listing and earning forecast error on the level of IPOs initial returns. Thus, the main objective is to examine whether these factors provide a signal to potential investors in IPOs that might have consequences on the level of initial return. This study also examines the relationship between the engagement of quality differentiated audit firms and level of earning forecast errors. Forecasting. Going public (Securities). Securities. 2003-11 Thesis http://psasir.upm.edu.my/id/eprint/9272/ http://psasir.upm.edu.my/id/eprint/9272/1/GSM_2003_12.pdf text en public masters Universiti Putra Malaysia Forecasting. Going public (Securities). Securities. Graduate School of Management Ramadili, Shamsher Mohamad English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
advisor	Ramadili, Shamsher Mohamad
topic	Forecasting. Going public (Securities). Securities.
spellingShingle	Forecasting. Going public (Securities). Securities. Mahussin, Norlida Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
description	The engagement of reputable underwriter and auditor by the listing firm is believed to provide a positive signal to the market, thus reducing the uncertainty surrounding the firm's value. Since audit quality is differentiated, some of the issuing firms switch to more reputable auditors during listing to increase the credibility of the financial information in the prospectus. The disclosure of earnings forecast in the prospectus is also perceived to provide information that could reduce the uncertainty. However, evidence from previous studies on these issues is inconclusive. This study investigates the effect of underwriter reputation, auditor choice and auditor switch during listing and earning forecast error on the level of IPOs initial returns. Thus, the main objective is to examine whether these factors provide a signal to potential investors in IPOs that might have consequences on the level of initial return. This study also examines the relationship between the engagement of quality differentiated audit firms and level of earning forecast errors.
format	Thesis
qualification_level	Master's degree
author	Mahussin, Norlida
author_facet	Mahussin, Norlida
author_sort	Mahussin, Norlida
title	Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
title_short	Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
title_full	Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
title_fullStr	Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
title_full_unstemmed	Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs
title_sort	forecast errors and the effect of underwriter reputation and auditor influence during listing on ipos
granting_institution	Universiti Putra Malaysia
granting_department	Graduate School of Management
publishDate	2003
url	http://psasir.upm.edu.my/id/eprint/9272/1/GSM_2003_12.pdf
_version_	1794018812446638080

Forecast Errors and the Effect of Underwriter Reputation and Auditor Influence During Listing on IPOs

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