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Overseas listing and earnings management methods selection

Author

Listed:
  • Wang, Ping
  • Chi, Mingyuan
  • Wang, Xiaochun

Abstract

This paper examines how management manipulates earnings from accrual earnings management to real earnings management after a firm's listing abroad. Using Chinese firms listed overseas, we find that overseas listing inhibits accrual earnings management and induces firms to use production and expense manipulation to increase real earnings management; private firms' overseas listing induces them to implement more real earnings management; firms with low multinational operations' overseas listing induce them to implement more real earnings management; and the overseas listing of low multinational enterprises induces them to implement more real earnings management.

Suggested Citation

  • Wang, Ping & Chi, Mingyuan & Wang, Xiaochun, 2023. "Overseas listing and earnings management methods selection," Finance Research Letters, Elsevier, vol. 55(PB).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003707
    DOI: 10.1016/j.frl.2023.103998
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    References listed on IDEAS

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    1. Popli, Manish & Raithatha, Mehul & Goyal, Lakshmi, 2022. "Avoiding the risk of de-legitimation: Impact of internationalization on earnings management of emerging market firms," Finance Research Letters, Elsevier, vol. 48(C).
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    1. Rigamonti, Alessandro Paolo & Greco, Giulio & Capocchi, Alessandro, 2024. "Futures, provisional sales, and earnings management in the global gold mining industry," Finance Research Letters, Elsevier, vol. 59(C).

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