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This study investigates the impact of pre-IPO earnings management on investor demand in the Indian IPO market. It also examines whether earnings management by issuer firms affects IPO valuation, a topic that is underexplored in accounting research.

The study uses the data of 310 IPOs from India during the period 2000–2021. The association between pre-IPO earnings management with investor demand and valuation is tested using cross-sectional ordinary least squares regression models with heteroscedasticity-robust standard errors.

The study finds that the degree of pre-IPO earnings management impacts retail investor demand, measured as their over-subscription multiple. Pre-IPO earnings management is unrelated to institutional investor bidding. Further, this paper suggests no relation between pre-IPO earnings management and IPO valuation.

Future studies could explore various other forms of earnings management and their impact on investor demand and valuation.

The findings of this study will help the investors and regulators to understand the practice of earnings management among IPO firms and how it is related to IPO demand and valuation.

This study contributes to the existing literature on IPO-earnings management and investor demand by documenting that issuer firms engage in earnings management to influence investor demand, particularly retail investor demand. Analysis of IPO valuation reveals that earnings management is mostly unrelated to IPO valuation, contrary to the general perception in the literature.

Gluten-free (GF) foods have gained momentum among consumers due to an increase in incidence and awareness of gluten sensitivity and intolerance. Millet is a GF grain with nutritive qualities comparable to other cereals. However, it was not clear how millet-based GF products would be accepted, leading to the goal of this research. Therefore, the purpose of this paper is to evaluate the effect of formulation on physical properties and consumer preference of millet-based GF bread.

Three bread formulations were used: proso millet flour (100 percent), proso millet flour–corn starch (1:1), and proso millet flour–potato starch (1:1). Physical and sensory properties were statistically evaluated.

Starch addition to the bread formulation had a significant influence on bread volume, color and firmness. A consumer’s age, gluten intolerance and familiarity with millet products did influence the frequency of consumption of GF products. Gluten-intolerant panelists consumed GF products more often than others who are not. Older panelists reported consuming more GF products than younger panelists. Gender also had a significant effect on consumers’ preference for overall acceptability and crumb aroma. The formulation had a significant effect on consumers’ preference of crust color and crumb aroma.

The paper presents an understanding of how starch addition modulates bread properties for the GF market.

In this paper, the authors explored a novel approach to use different starches and proso millet for making GF bread and determined sensory responses based on demographics like age, celiac diagnosis and familiarity with GF foods. This vital information will help processors to determine the portion of the market to target and the formulation to explore further.

Prior research on earnings management largely assumes that newly public firms manage earnings opportunistically around IPOs. However, only a few studies have empirically examined the real motives behind newly public firms’ earnings management. The purpose of this paper is to examine the impact of ownership dilution on earnings management among IPO firms. The authors chose the setting of security offerings in an emerging market, which is characterised by unique ownership structure, to examine the possible incentive of owners or pre-IPO shareholders to engage in earnings management.

The study employs accrual and real transactions measures to check the presence of earnings management among 409 IPO firms from India during the period 2000‒2018. Subsequently, using ordinary least squares regression models with heteroscedasticity-robust standard errors, this paper examines the relationship between earnings management and selling or dilution incentives of pre-IPO shareholders.

The study finds that the degree of earnings manipulation by issuer firms is positively associated with the ownership dilution at the time of IPO as well as around lockup expiration.

The findings of this study will help the investors and regulators to understand the practice of earnings management among IPO firms and how it is linked to the ownership dilution of pre-IPO shareholders.

The paper contributes to the limited stream of research that investigates the motives of earnings management among IPO firms. It empirically establishes an association between the selling incentive of pre-IPO shareholders and earnings management.