At the time of an initial public offering, shares in a firm are typically held by venture capitalists, insiders, corporate investors, and angel investors. We examine the role of angel investors in the IPO process. We find that angel investors provide equity capital in industries that venture capitalists are less likely to serve and that shareholders in angel backed IPO firms are more likely to ...

Research Summary Previous studies on initial public offerings (IPOs) in mature stock markets have documented that high-reputation underwriters primarily work with high-quality firms and vice versa—that is, they are paired through a quality-matching mechanism. We propose nascent market, pricing mechanism may also play role, which (the underwriting fee) sets the pairing. examine these two mechani...

According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remar...