Earnings Management and IPO Pricing:

A Conceptual Analysis

Abstract

This article is a review of existing practice of Earnings Management by different corporate entities in different countries of the world for conceptual understanding. The paper provides an account of four commonly used hypotheses in Earnings Management observed in different developed financial systems. It has identified the major techniques of earnings management as well as the motivation behind it and the impact of earnings management on IPO pricing is covered in the paper.