Browsing by Author "Pandey, Aprajita"

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Earnings Management and IPO Anomalies—Evidence from Indian Stock Market
(Sage, 2021-03) Pandey, Aprajita
This study examines the relationship between the extent of earnings management in a firm, the level of underpricing during an initial public offering (IPO), and their long-term performance. Earnings management has been acknowledged as a matter of concern during IPOs since long; however, its relationship with underpricing and long-term returns remained inconclusive in emerging markets like India. Using a sample of Indian IPO firms, this study finds that firms that manage accruals aggressively in the pre-IPO period have high initial returns and subsequently low stock returns in the post-IPO period. This study also observed that firms that have used abnormal accruals more conservatively while reporting earnings have better returns in the third year after IPO compared to the firms that reported more aggressively. The results are in consonance with the theory of information asymmetry and suggest that valuation of an IPO firm becomes ambiguous with high level of earnings management, which leads to higher underpricing.
Impact of Firm Specific and Macro-Economic Factors on the Level of Underpricing of Initial Public Offerings (IPOs) : Evidence from the Indian Market
(Associated Management Consultants, 2018-02) Pandey, Aprajita
The purpose of this paper was to examine the impact of firm specific and macro-economic factors on the level of underpricing of firms going for initial public offerings (IPOs) in the National Stock Exchange, India. We considered firms that went for IPOs on the National Stock Exchange during the period from 1999-2016, which was further segregated to quarterly observations. Both traditional method and market adjusted abnormal rate of returns (MAAR) methods were used to gauge underpricing. The study found that among the firm specific variables, issue price and firm age were significant in influencing the level of underpricing. Inflation, market volatility, market returns, and economic activity had greater explanatory power than other macro-economic variables on underpricing. The study contributes to the vast literature of determinants of underpricing as most of the study focused on firm-related factors only; this study has given some insights on the role of macro-economic factors to explain underpricing.
Re-visiting the efficacy of Neural Networks in Detecting Accrual and Real Earnings Management
(Inder Science, 2024) Pandey, Aprajita
Earnings management practices by firms to conceal their actual financial performance have always been a matter of concern for industry and academia Therefore, over some time researchers have developed various models for the timely detection of earnings management practices However, the efficiency of such models has been frequently challenged in numerous studies One possible reason given in the literature for the ineffectiveness of these models is the assumption of the linear relationship between the variables used in the model Against this backdrop, the present study explores Neural Network based methods to model earnings management practices, which drops the assumption of linearity The objective of the current work is to investigate that, while detecting earnings management, do neural network-based models show better results as compared to traditional linear regression models in A Linear Regression (LR) model was compared with three neural networks i e Multi-layer perceptron (MLP), self-organizing map (SOM),
Role of corporate governance in constraining earnings management practices: a study of select Indian and Chinese firms
(Emerald, 2021-10) Pandey, Aprajita
The purpose of this paper is to investigate the effect of corporate governance on both accrual-based and real earnings management practices in select firms of the two world's largest economies, i.e. India and China.