BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Author
Sosnowski Tomasz (Uniwersytet Łódzki), Wawryszuk-Misztal Anna (Uniwersytet Marii Curie-Skłodowskiej w Lublinie)
Title
Voluntary Disclosure and Quality of New Stock Companies' Earnings Forecast in Eu-regulated Markets
Ujawnianie oraz jakość prognozy zysku spółek debiutujących na europejskich regulowanych rynkach akcji
Source
International Business and Global Economy, 2018, nr 37, s. 348-359, bibliogr. 24 poz.
Biznes Międzynarodowy w Gospodarce Globalnej
Keyword
Prospekt emisyjny, Pierwsza oferta publiczna, Zysk, Rynek akcji
Prospectus, Initial Public Offering (IPO), Profit, Equity market
Note
JEL Classification: G32, G39
summ., streszcz.
Abstract
W krajach europejskich przedsiębiorstwa realizujące pierwszą ofertę publiczną (IPO) mogą podjąć dobrowolną decyzję o tym, czy opublikować prognozę zysku w prospekcie emisyjnym. Opierając się na próbie 651 spółek giełdowych debiutujących na europejskich rynkach regulowanych w latach 2010-2016 poszukujemy odpowiedzi na pytania dotyczące rodzaju i trafności prognoz wyników finansowych opublikowanych w prospektach emisyjnych. Uzyskane wyniki wskazują, iż jedynie 12,58% spółek zdecydowało się ujawnić prognozy finansowe w prospekcie emisyjnym, przy czym zakres ujawnianych informacji finansowych jest zróżnicowany. Najczęściej prospekty zawierają prognozy przychodów ze sprzedaży, zysku netto oraz EBITDA. Otrzymane wyniki pozwalają stwierdzić, że prognozy finansowe są zbyt optymistyczne i nietrafne.(abstrakt oryginalny)

Companies conducting IPO in European countries make a voluntary decision regarding the disclosure of earnings forecast in prospectus. Using a sample of 651 companies that conducted IPO on EU-regulated markets between 2010 and 2016, we investigate the popularity of decisions on revealing financial forecasts in prospectus and address the questions regarding the type and accuracy of such forecasts. We find that only 12.58% of companies voluntarily included their financial forecasts in the IPO prospectus, and the scope of the disclosed information is diversified. Most commonly prospectuses include projections of sales revenues, net profits, and EBITDA. Our results give evidence that financial projections are over-optimistic and not accurate.(original abstract)
Full text
Show
Bibliography
Show
  1. Bédard J., Coulombe D., Courteau L., 2008, Audit committee, underpricing of IPOs, and accuracy of management earnings forecasts, Corporate Governance: An International Review, vol. 6.
  2. Bédard J., Coulombe D., Courteau L., 2016, The credibility of earnings forecasts in IPO prospectuses and underpricing, Account Perspectives, vol. 4.
  3. Boubaker S., Gounopoulos D., Kallias A., Kallias K., 2017, Management earnings forecasts and IPO performance: Evidence of a regime change, Review of Quantitative Finance and Accounting, vol. 4.
  4. Cazavan-Jeny A., Jeanjean T., 2007, Levels of voluntary disclosure in IPO prospectuses: An empirical analysis, Review of Accounting and Finance, vol. 2.
  5. CEC, 2004, Commission of the European Communities, Commission Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements, http://ec.europa.eu/internal_market/securities/ docs/prospectus/reg-2004-809/reg-2004-809_en.pdf [access: 26.08.2018].
  6. Chen G., Firth M., Krishnan G.V., 2001, Earnings forecast errors in IPO prospectuses and their associations with initial stock returns, Journal of Multinational Financial Management, vol. 2.
  7. Citron D., Cressy R., Gerard X., 2009, Prospectus forecast publication and forecast errors: The role of venture capitalist certification, Venture Capital, vol. 2.
  8. Cormier D., Martinez I., 2006, The association between management earnings forecasts, earnings management, and stock market valuation: Evidence from French IPO, The International Journal of Accounting, vol. 41.
  9. Degeorge F., Derrien F., 2001, IPO performance and earnings expectations: Some French evidence, Working paper, HEC Paris.
  10. EC, 2012, European Commission, Commission Delegated Regulation (EU) No 862/2012 of 4 June 2012 amending Regulation (EC) No 809/2004 as regards information on the consent to use of the prospectus, information on underlying indexes and the requirement for a report prepared by independent accountants or auditors, https://eur-lex. europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:256:0004:0013:EN:PDF [access: 26.08.2018].
  11. EP, 2003, European Parliament, Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC, L 345/64 Official Journal of the European Union EN 31.12.2003, https://eur-lex.europa. eu/legal-content/EN/TXT/PDF/?uri=CELEX:32003L0071&from=en [access: 26.08.2018].
  12. Firth M., 1998, IPO profit forecasts and their role in signaling firm value and explaining post-listing returns, Applied Financial Economics, vol. 1.
  13. Gounopoulos D., Kraft A., Skinner F., 2015, Voluntary vs. mandatory management earnings forecasts in IPOs, Economics and Finance Working Paper Series, Working Paper No. 15-12. Brunel University London, https://www.brunel.ac.uk/ data/assets/pdf_ file/0016/421144/1512.pdf [access: 18.01.2018].
  14. Gramlich J.D., Sorensen O., 2004, Voluntary management earnings forecasts and discretionary accruals: Evidence from Danish IPOs, European Accounting Review, vol. 2.
  15. Hammami M., Sioud O.B., 2014, The reliability of management earnings forecasts in IPO prospectuses: A study of managers' forecasting p, International Scholarly and Scientific Research & Innovation, vol. 6.
  16. How J.C.Y., Yeo J.J.L., 2001, The impact of forecast disclosure and accuracy on equity pricing: The IPO perspective, Journal of Accounting, Auditing, and Finance, vol. 4.
  17. Jelic R., 2011, Management forecasts and IPO performance, Working Paper, University of Birmingham, United Kingdom.
  18. Jog V.J., McConomy R.J., 2003, Voluntary disclosure of management earnings forecasts in IPO prospectuses, Journal Business Finance & Accounting, vol. 1.
  19. Lonkani R., Firth M., 2005, The accuracy of IPO profit forecasts in Thailand and their relationships with stock market valuation, Accounting and Business Research, vol. 3.
  20. Mnif A., 2009, Corporate governance and management earnings forecast quality: Evidence from French IPOs, La place de la dimension européenne dans la Comptabilité Contrôle Audit, Strasbourg, France.
  21. Roosenboom P., Goot T.V., Mertens G., 2003, Earnings management and initial public offerings: Evidence from the Netherlands, The International Journal of Accounting, vol. 3.
  22. Schatt A., Roy T., 2002, Analyse empirique des ecarts de previsions de Benefices dans les prospectus d'introduction: Le cas francais, Technologie et management de l'information: Enjeux et impacts dans la comptabilite, le controle et l'audit, France.
  23. Sosnowski T., Wawryszuk-Misztal A., 2017a, Zróżnicowanie prognozowanych informacji finansowych zawartych w prospektach emisyjnych spółek przeprowadzających pierwsze oferty pub- liczne na GPW w Warszawie, Przedsiębiorczość i Zarządzanie, vol. 7.
  24. Sosnowski T., Wawryszuk-Misztal A., 2017b, Trafność prognoz wyniku finansowego i ich wpływ na zmiany wartości rynkowej nowych spółek giełdowych, Finanse, vol. 1.
Cited by
Show
ISSN
2300-6102
Language
eng
URI / DOI
http://dx.doi.org/10.4467/23539496IB.18.025.9398
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu