An empirical study of the effect of venture capital participation on the accounting information quality of IPO firms

Artikel

Using a sample of IPO companies on the Shenzhen Small and Median Enterprise Board and the ChiNext Stock Market between 2005 and 2009, this paper analyzes the effect of venture capital participation on accounting information quality. We find that venture capitalists have a significant effect on earnings management, with reduced discretionary accruals before the expiration of the equity lock-up period and enhanced discretionary accruals after the expiration of the equity lock-up period. Our findings support the moral hazard hypothesis of venture capital, but not the certification/monitoring role of venture capital in IPOs. In addition, we find that venture capital plays a more important role in the earnings management of non-state-owned IPO companies than of state-owned companies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 5 ; Year: 2012 ; Issue: 3 ; Pages: 251-268 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Management ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: Venture capital ; Earnings management ; IPO ; Lock-up period

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hu, Zhiying ; Cai, Weixing ; Han, Jinjin ; Sa, Rula
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2012

Further information

• DOI: doi:10.1016/j.cjar.2012.08.004
• Handle: http://hdl.handle.net/10419/187576
• Last update: 10.03.2025, 11:44 AM CET