University of Illinois Urbana-Champaign

Private equity ownership and financial misreporting

Wang, Shuyang

Content Files
WANG-DISSERTATION-2020.pdf

Permalink

https://hdl.handle.net/2142/108247

Description

Title
Private equity ownership and financial misreporting
Author(s)
Wang, Shuyang
Issue Date
2020-04-13
Director of Research (if dissertation) or Advisor (if thesis)
Li, Laura Yue
Doctoral Committee Chair(s)
Li, Laura Yue
Committee Member(s)
  • Chen, Clara Xiaoling
  • Zhu, Wei
  • McClane, Jeremy
Department of Study
Accountancy
Discipline
Accountancy
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Date of Ingest
2020-08-27T00:49:54Z
Keyword(s)
  • Private equity
  • financial reporting quality
  • misreporting
  • corporate governance
Abstract
I study whether private equity (PE) ownership is associated with portfolio firms’ financial misreporting by examining the occurrence of restatements and SEC enforcement actions during the post-IPO period. Using a sample of firms that went public between 1998 and 2015, I find that PE-backed firms are more likely to issue restatements during the five-year post-IPO period than non-PE-backed firms. The restatements received by PE-backed firms are more material, i.e., having a more negative impact on net income or longer duration. Furthermore, PE-backed firms are more likely to be subject to SEC Accounting and Auditing Enforcement Releases (AAERs). Cross-sectional analyses suggest that the financial misreporting of PE-backed firms is attributable to PE firms’ pursuit of profits as well as their control over the board and executives. Overall, this paper provides new insights into the opportunistic influence of PE firms.
Graduation Semester
2020-05
Type of Resource
Thesis
Permalink
http://hdl.handle.net/2142/108247
Copyright and License Information
Copyright 2020 Shuyang Wang

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