IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v51y2015is3p140-157.html
   My bibliography  Save this article

Accrual Quality and Opportunistic Seasoned Equity Offering in the Korean Stock Market

Author

Listed:
  • Kyung Soon Kim
  • Jin Hwon Lee
  • Chune Young Chung

Abstract

We examine accrual quality (AQ) and its relationship with opportunistic seasoned equity offering (SEO) in the emerging Korean stock market. According to our empirical results, SEO firms with lower AQ tend to show higher abnormal returns around SEO announcement and significantly lower long-term performance after SEO. These results are more evident for SEO firms in which influence of institutional investors is weak. These findings suggest that poor AQ may be an important predictor of incentive for opportunistic SEOs and that the incentive may strengthen when institutional investors’ monitoring role weakens.

Suggested Citation

  • Kyung Soon Kim & Jin Hwon Lee & Chune Young Chung, 2015. "Accrual Quality and Opportunistic Seasoned Equity Offering in the Korean Stock Market," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(S3), pages 140-157, May.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:s3:p:140-157
    DOI: 10.1080/1540496X.2015.1026732
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2015.1026732
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2015.1026732?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang Liu & Chune Young Chung & Hong Kee Sul & Kainan Wang, 2018. "Does hometown advantage matter? The case of institutional blockholder monitoring on earnings management in Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 196-221, February.
    2. Kant, Chander, 2018. "Financial openness & institutions in developing countries," Research in International Business and Finance, Elsevier, vol. 46(C), pages 240-250.
    3. Puwanenthiren, Premkanth & Azam, Md Saiful & Jahangir Ali, Muhammad & Nadarajah, Sivathaasan, 2024. "Does annual report readability influence the design of SEOs?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 970-984.
    4. Khalid Latif & Arshad Ali Bhatti & Abdul Raheman, 2017. "Earnings Quality: A Missing Link between Corporate Governance and Firm Value," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(2), pages 255-280, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:51:y:2015:i:s3:p:140-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.