Title
The Impact of the CSRC Regulation No. 12-1996 on the Credibility of Chinese IPO Earnings Forecasts
Document Type
Article
Publication Date
2009
Publication Title
Global Finance Journal
Volume
20
Issue
2
First Page
165
Last Page
179
Abstract
This study examines whether the Chinese Securities Regulatory Commission (the CSRC) Regulation No. 12-1996, Announcement of Some Rules on the Issuance of Shares, may enhance the credibility of management earnings forecasts in Chinese IPO prospectuses. Using a sample of 858 IPO earnings forecasts over the period 1991-2005, we find that earnings forecasts have been less optimistic and more accurate after the regulation was promulgated on December 26, 1996. Overall, our findings suggest that the CSRC Regulation No. 12-1996 can improve the reliability of Chinese IPO earnings forecasts.
Recommended Citation
Mon, Jerry and Liu, Guoping. (2009). The Impact of the CSRC Regulation No. 12-1996 on the Credibility of Chinese IPO Earnings Forecasts. Global Finance Journal, 20 (2), 165-179.
https://scholar.uwindsor.ca/odettepub/32
Comments
The article available for download is a post print. The definitive version was published in Global Finance Journal and Accounting and is available here. Copyright (2012) Elsevier B.V.