IPO Profit Guarantees And Income Smoothing

The imposition of Initial Public Offering (IPO) profit guarantees is widespread among companies that seek listings on the Second Board of the Kuala Lumpur Stock Exchange (KLSE). It is a unique feature of the IPO market in Malaysia during 1996-1999. Extending prior research on income smoothing, this...

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Main Author:	Noraizan, Ripain
Format:	Thesis
Language:	eng eng
Published:	2002
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/680/1/NORAIZAN_BT._RIPAIN.pdf https://etd.uum.edu.my/680/2/1.NORAIZAN_BT._RIPAIN.pdf
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id	my-uum-etd.680
record_format	uketd_dc
spelling	my-uum-etd.6802013-07-24T12:08:29Z IPO Profit Guarantees And Income Smoothing 2002 Noraizan, Ripain Sekolah Siswazah Sekolah Siswazah HG Finance The imposition of Initial Public Offering (IPO) profit guarantees is widespread among companies that seek listings on the Second Board of the Kuala Lumpur Stock Exchange (KLSE). It is a unique feature of the IPO market in Malaysia during 1996-1999. Extending prior research on income smoothing, this study investigates the income smoothing behavior on a sample of 92 IPO companies with profit guarantees of which 54 of them reported profit guarantee surpluses. For each of the companies, Eckel's Income Smoothing Index (1981) is calculated based on two sub-periods: i.e. (1) ten year period comprising five years before and five years after listing, and (2) five-year period comprising one year before and one year after the profit guarantee period. Chi-Square and Kruskal-Wallis tests are used to test-i the association between the incidence of income smoothing and whether a company reported a profit guarantee shortfall or surplus. The evidence accepts the null hypothesis that there is no significant difference in income smoothing between companies with IPO profit guarantee surplus and IPO profit guarantee shortfall for both sub-periods. In addition, the findings also indicate that income smoothing is not associated with factors such as company's sectoral classification, type of auditor and year of listing. 2002 Thesis https://etd.uum.edu.my/680/ https://etd.uum.edu.my/680/1/NORAIZAN_BT._RIPAIN.pdf application/pdf eng validuser https://etd.uum.edu.my/680/2/1.NORAIZAN_BT._RIPAIN.pdf application/pdf eng public masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HG Finance
spellingShingle	HG Finance Noraizan, Ripain IPO Profit Guarantees And Income Smoothing
description	The imposition of Initial Public Offering (IPO) profit guarantees is widespread among companies that seek listings on the Second Board of the Kuala Lumpur Stock Exchange (KLSE). It is a unique feature of the IPO market in Malaysia during 1996-1999. Extending prior research on income smoothing, this study investigates the income smoothing behavior on a sample of 92 IPO companies with profit guarantees of which 54 of them reported profit guarantee surpluses. For each of the companies, Eckel's Income Smoothing Index (1981) is calculated based on two sub-periods: i.e. (1) ten year period comprising five years before and five years after listing, and (2) five-year period comprising one year before and one year after the profit guarantee period. Chi-Square and Kruskal-Wallis tests are used to test-i the association between the incidence of income smoothing and whether a company reported a profit guarantee shortfall or surplus. The evidence accepts the null hypothesis that there is no significant difference in income smoothing between companies with IPO profit guarantee surplus and IPO profit guarantee shortfall for both sub-periods. In addition, the findings also indicate that income smoothing is not associated with factors such as company's sectoral classification, type of auditor and year of listing.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Noraizan, Ripain
author_facet	Noraizan, Ripain
author_sort	Noraizan, Ripain
title	IPO Profit Guarantees And Income Smoothing
title_short	IPO Profit Guarantees And Income Smoothing
title_full	IPO Profit Guarantees And Income Smoothing
title_fullStr	IPO Profit Guarantees And Income Smoothing
title_full_unstemmed	IPO Profit Guarantees And Income Smoothing
title_sort	ipo profit guarantees and income smoothing
granting_institution	Universiti Utara Malaysia
granting_department	Sekolah Siswazah
publishDate	2002
url	https://etd.uum.edu.my/680/1/NORAIZAN_BT._RIPAIN.pdf https://etd.uum.edu.my/680/2/1.NORAIZAN_BT._RIPAIN.pdf
_version_	1747826972293070848

IPO Profit Guarantees And Income Smoothing

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