Using a sample of 418 private placements by firms on the Taiwan stock markets, we examine their announcement returns …

specialization) and earnings management (as measured by unexpected accruals) for Taiwan IPO firms.Design/methodology/approach – First … new issues between 1999 and 2002 from the Taiwan Economic Journal database.Findings – It is found that big five auditors … are related to less earnings management in the IPO year in Taiwan. This shows that higher quality auditors constrain …