ABSTRACT
PurposeThis study aims to examine earnings management around initial public offerings (IPOs) in India. It also explores the influence of issue characteristics on earnings management around the IPOs.Design/methodology/approachA sample of 511 IPOs that came during April 2003-March 2019 is studied for calculating earnings management for pre-issue, issue and post-issue years. Using Cross-Sectional Modified Jones Model, the paper presents earnings management on the basis of three proxies i.e. discretionary accruals, discretionary current accruals and discretionary long-term accruals. The influence of issue characteristics on earnings management practised around the IPOs is also observed through correlation and multiple regression analysis.FindingsThe paper finds that earnings management is abnormally high during the issue year compared with pre-issue and post-issue years. It also unveils that profitability, premium, age, and size of the issuer significantly determine the level of pre-issue and issue year earnings management practised by Indian IPO issuers.Research limitations/implicationsThe findings are useful to stakeholders (potential investors, analysts and regulators) to observe, assess and understand the quality of financial numbers that are based on fallacious disclosure of accounting figures. It provides insight into the possibilities of managed earnings around the issue that could influence investors' decision-making. Further, the study reflects the efficacy of Indian regulatory norms for IPOs.Originality/valueTo the authors' knowledge, it is the only Indian study that had used an extensive data set of about two decades to calculate earnings management during pre-issue, issue and post-issue years. The uniqueness of the study further lies in three proxies of earnings management representing short-term and long-term accruals. Moreover, it is the first study to observe the influence of IPO issue characteristics on earnings management.
ABSTRACT
PurposeResponding to COVID-19, this conceptual paper uses rewilding to interrupt anthropocentric and human/nature dualist properties of accounting education. Through rewilding accounting education, informed by posthumanist and ecofeminist thought, this paper aims to develop an accounting pedagogy that shapes greater ecocentric narratives. Accounting educators can contribute to addressing crises by evolving new pedagogies that radically transform the education of future accounting professionals.Design/methodology/approachThe authors take a critical stance in analysing the human-centred accounting education model. They explore how this model can be reimagined through rewilding accounting education, resulting in learning interventions that foster an understanding of intrinsic value, complexity of systems and collective disposition with all species and the natural world.FindingsRewilding learning interventions embed an ecocentric approach in accounting curricula design to extend beyond a human focus. Rewilding learning interventions practically explored with application to accounting include learning with and from nature, Indigenous knowledge perspectives, play as a common language and empathy as a dialogical bridge.Social implicationsThe authors present an accounting pedagogy that fosters among accounting students and educators a relational orientation and ecological consciousness that encompasses compassion and openness to others, including non-human species and nature. This will ensure that accounting graduates are better prepared for addressing future crises that stem from our disconnect with nature.Originality/valueThis paper adds to limited research investigating accounting and the Anthropocene. Investigations into the Anthropocene's human-centred discourse in accounting education are vital to respond adequately to crises. This paper extends social and environmental accounting education literature to encompass less anthropocentric discourse and greater relational learning.