This paper suggests that firms use their opportunities for earnings management to inform the capital market of the quality of their equity issues. We argue that firms issuing new shares with higher discounts, and hence with larger expected dividend increases, are likely to report larger earnings...

In bank-dominated capital markets with blocked ownership firms are expected to pay out a smooth stream of dividends for the large institutional equity holders. This forces companies to report earnings high enough to pay out the dividends. On the other hand taxation may create an economic motive...

This paper analyzes dual announcements of IAS (International Accounting Standards) and FAS (Finnish Accounting Standards) earnings on the partially segmented Helsinki Stock Exchange where separate listings of unrestricted and restricted shares make it possible to discern foreign and domestic...

This paper provides evidence that firms issuing new shares at higher discounts and hence with larger expected dividend increases, use their opportunities for earnings management in such a way that, by the year of a share issue, they report larger earnings in excess of current dividends than...