Impact of Shareholder Structure on Earnings Manipulation in Thai IPOs on the Market for Alternative Investment (mai): Pre-and Post-IPO Analysis
DOI:
https://doi.org/10.58837/CHULA.CBSJ.45.2.6Keywords:
ownership concentration, managerial ownership, ownership retention, real earnings management, accrual-based earnings management, initial public offering (IPO), Thai firmsAbstract
The connection between shareholder structure and earnings manipulation, which is also called earnings management, in the pre- and post-IPO years is examined in this paper, with an emphasis on what is happening with Thai IPO firms. The sample comprises 72 firms that were listed on the Market for Alternative Investment (mai) from 2012 to 2017. The findings reveal a statistically significant negative association between management shareholders and the practice of manipulating real earnings in the pre-IPO year. Nonetheless, during this period, no association between shareholding concentration and earnings manipulation was found. In the post-IPO year, there is no association between shareholder retention and earnings manipulation. These findings contribute to our knowledge of how shareholder structure impacts earnings manipulation practices in IPO firms, emphasizing the role of management shareholders in mitigating opportunistic behavior. The absence of a significant post-IPO relationship may be attributed to the substantial decrease in management’s shareholding, resulting in a consequential loss of control and influence over earnings management. This study offers valuable insights for various stakeholders, including policymakers, investors, and corporate practitioners seeking to comprehend the dynamics of shareholder structure and earnings manipulation activities in Thai IPO firms.
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