Using a system of three simultaneous equations, we test the predictions of Datar, Feltham, and Hughes 1991 and Hughes 1986 between auditor choice, earnings disclosures, and retained ownership in U.S. firms making initial public offerings of securities. Using a sample of initial public offerings...

This study contributes evidence on the valuation relevance of the ‘use of proceeds' disclosure in the initial public offering (IPO) prospectus. The paper develops a classification of ‘use of proceeds' disclosures that aims to capture information embedded in the disclosures relating to the...

Using word content analysis on the time-series of IPO prospectuses, we find evidence that issuers trade off underpricing and strategic disclosure as potential hedges against litigation risk. This tradeoff explains a significant fraction of the variation in prospectus revision patterns, IPO...

Initial public offering (IPO) companies are exempt from Section 404 of the Sarbanes-Oxley Act of 2002, leaving investors to assess the quality of an IPO company's internal controls, which affect the quality of management-provided financial information, without an opinion on internal controls...

We examine voluntary disclosure and capital investment by an informed manager in an initial public offering (IPO) in the presence of informed and uninformed investors. We find that in equilibrium, disclosure is more forthcoming — and investment efficiency is lower — when a greater fraction...

This study examines whether disclosure frequency induced myopia influences the types of firms that go public and their choice of listing exchanges if they decide to do so. We find that the incentive to stay private in order to avoid disclosure frequency induced myopia creates a downward kink in...

The primary aim of the study is to investigate what Malaysian IPO issuers indicate as the intended use of IPO proceeds. This is achieved through a manual content analysis of 161 IPO prospectuses during the period of 2005-2013. The results indicate that two major intended uses of IPO proceeds are...

This study investigates (a) why some IPO firms proactively disclose internal control weaknesses (ICWs) and remediation progress in their prospectuses before going public, despite being exempt from the requirements of Sections 302 and 404 of the Sarbanes-Oxley Act at the time of IPO, and (b) the...

We examine voluntary disclosure and capital investment by an informed manager in an initial public offering (IPO) in the presence of informed and uninformed investors. We find that in equilibrium, disclosure is more forthcoming — and investment efficiency is lower — when a greater fraction...

This study examines if the prospectus disclosure of the motives for an initial public offering (IPO) explains the longrun performance of equity issuers. It uses hand-collected data for 245 IPOs from the Stock Exchange of Thailand (SET), and also the Market for Alternative Investments (MAI),...