EARNINGS MANAGEMENT AND SEASONED EQUITY OFFERINGS IN AN EMERGING MARKET: EVIDENCE FROM THAILAND

Main Article Content

Polwat Lerskullawat

Abstract

Abstract


                This research examines whether there was a difference of earnings management between the year of seasoned equity offerings (SEOs) and non-SEOs in Thailand during the period 2000 to 2015, and which factors drove earnings management in SEO firms. The famous Modified Jones model, and Yoon and Miller’s (2002) model (YM model) are applied to capture earnings management via discretionary accruals, whereas Roychowdhury’s (2006) model is used to measure the earnings manipulation through real activities. Based on 242 SEO firms, the results show that earnings management in the year of SEOs is significantly different from the year of non-SEOs when the models of discretionary accruals are applied. With regard to determinants, operating cash flow and time lag are two factors related to earnings management in both the discretionary accrual and real activities models, whereas the other factors (namely firm size and offer size) are relevant depending on the models applied. Nevertheless, SEOs and issuing methods show no role in driving earnings management in Thailand. Therefore, investors would be advised to put more attentions in the other factors rather than SEOs when the firms have signal of earnings management.


 


Keywords: market-based accounting, earnings management, discretionary accruals, real activities manipulation, seasoned equity offerings


 


 

Article Details

How to Cite
Lerskullawat, P. (2018). EARNINGS MANAGEMENT AND SEASONED EQUITY OFFERINGS IN AN EMERGING MARKET: EVIDENCE FROM THAILAND. Journal of Humanities and Social Sciences Thonburi University, 12(29), 9–21. Retrieved from https://so03.tci-thaijo.org/index.php/trujournal/article/view/145107
Section
บทความวิจัย

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