FINANCIAL FORECASTS OF SMEs IN IPOs: FACT OR FICTION?

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Published: 2015-10-31

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MARÍA-JOSÉ PALACÍN-SÁNCHEZ
University of Seville, Spain
http://orcid.org/0000-0003-0246-2551
FERNANDO ALONSO-CANALES
University of Seville, Spain

Abstract

This article assesses the financial forecasts of small and medium-sized enterprises (SMEs) in their process of initial public offering (IPO). In particular, the quality of earnings forecasts is analysed and the determinants of accuracy of earning forecasts are explored. To this end, the empirical study considers all the companies listed on the Spanish Alternative Stock Market (MAB). The results show that managers of newly listed Spanish SMEs have mostly been optimistic and highly inaccurate when estimating their future earnings. 

Article Details

Issue

No. 48 (2015): Fourth Quarter

Section

Finance and Accounting

Author Biographies

MARÍA-JOSÉ PALACÍN-SÁNCHEZ, University of Seville, Spain

Profesora Titular de Universidad

Departamento de Economía Financiera y Dirección de Operaciones

Universidad de Sevilla

FERNANDO ALONSO-CANALES, University of Seville, Spain

Estudiante Máster

Graduado en Finanzas y Contabilidad

How to Cite

FINANCIAL FORECASTS OF SMEs IN IPOs: FACT OR FICTION?. (2015). UCJC Business and Society Review (formerly Known As Universia Business Review), 48. https://journals.ucjc.edu/ubr/article/view/1219

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