Please use this identifier to cite or link to this item: https://doi.org/10.1016/0278-4254(96)00004-X
Title: Forecast disclosure by initial public offering firms in a low-litigation environment
Authors: Mak, Y.T. 
Issue Date: 1996
Source: Mak, Y.T. (1996). Forecast disclosure by initial public offering firms in a low-litigation environment. Journal of Accounting and Public Policy 15 (2) : 111-136. ScholarBank@NUS Repository. https://doi.org/10.1016/0278-4254(96)00004-X
Abstract: My study examines the level of disclosure of forecast information by initial public offering firms (IPO firms) in a low-litigation environment. Based on a sample of New Zealand IPO firms, the associations among the level of disclosure of earnings forecast information in their prospectuses and the following independent variables are examined: operating history, variance of aftermarket returns, proportion of inside share ownership, expected short-term earnings, and size of IPO firms. The level of disclosure of earnings forecast information has been measured by the number of individual financial years covered by earnings forecasts. Firms with higher variance of returns tended to disclose more earnings forecast information, while the proportion of shares retained by inside owners was negatively related to the level of disclosure of forecast information. Further, firms with relatively lower expected short-term earnings tended to disclose longer-range forecasts. There is only weak support for the hypothesized negative relationship between number of years of operating history and forecast disclosure. Firm size, which is used as a control variable, was not significantly related to the disclosure of forecast information, after controlling for the other explanatory variables. There was also evidence of differences in forecast disclosure across industries, after controlling for the other explanatory variables.
Source Title: Journal of Accounting and Public Policy
URI: http://scholarbank.nus.edu.sg/handle/10635/45220
ISSN: 02784254
DOI: 10.1016/0278-4254(96)00004-X
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

18
checked on Dec 12, 2017

Page view(s)

59
checked on Dec 15, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.