IAF’s Third Knowledge Sharing: Earnings Quality of Indonesian Firms Surrounding IPOs

International Accounting and Finance’s third knowledge sharing session for the International Accounting and Finance program was lead by Ms. Yanthi Hutagaol on the subject of “Earnings Quality of Indonesian Firms Surrounding IPOs”.

The motivation for the study was the fact that earnings forecasts for IPOs disappeared after 2007.  The study examined the short term and long term effects of earnings management.  The result of the study was that there is no earning management, there is earnings persistence although earnings became less predictable.  The presentation provoked discussion, particularly around how governance may affect earnings management.