유상증자 유형에 따른 차별적 이익조정

Prior research reports that issuers of seasoned equity offerings (hereafter ‘SEO’) have incentives to inflate reported earnings in order to increase offering price and protect the wealth of existing shareholders. However, we predict that these incentives can vary with the types of SEO(right offering, public offering, private placement to the third party). While firms with right offering raise equity fund from existing shareholders, firms with public offering and private placement to the third party raise equity fund from new shareholders. Considering the differences in wealth transfer structure, manager’s incentives to raise reported earnings in order to boost offering price may be weaker in case of right offering than the other two SEO types. In addition, private placement to the third party raise equity fund from a few investors, who generally have special relationship with SEO firms such as insiders. If some insiders participate in SEO under private placement to the third party, the SEO firms may have incentives to lower reported earnings in order to reduce offering price for the benefit of the insiders, resulting in wealth losses of existing shareholders. So this study examines how earnings management patterns vary with the three different types of SEO. We also predict that offering firms are more likely to manage earnings in the quarter preceding SEO. By regulations, offering price is calculated by stock prices for 42 days before SEO dates(payment date of investing amount for SEO). This suggests that SEO firms can manage earnings in the quarter immediately preceding SEO in order to boost stock price, affecting offering price. So we use quarterly discretionary accruals as a proxy for earnings management.