Big firms in emerging markets more likely to go public, manipulate profits
The study looked at why companies in an emerging economy like Poland decide to go public by issuing stocks or bonds. They found that bigger and more profitable companies are more likely to go public, even though they are usually younger. Companies with higher market value are more likely to go public on the main stock market. Highly indebted companies are more likely to issue stocks on the alternative market or bonds. Companies issuing stocks on the alternative market often manipulate their profits before going public.