Prior studies show that earnings quality of public firms is higher than private firm. The fact is explained by the Demand theory stating that public firms are under scrutiny of many stakeholders compared to private firms. IPO firms are the suitable firms to observe the transition from private to public firms. Therefore, this study, extensively, analyzes three issues in the IPO context. Firstly, the earnings quality of Indonesian IPO firms, secondly, the IPO short-run performance, and lastly, the IPO long-run performance. The research assesses the pre-IPO and post-IPO earnings quality to test whether post-IPO earnings quality increases to meet the market demand. Next, the research analyzes the impact of pre-IPO earnings quality on the IPO short-run performance. For further analysis, this study examines the sensitivity of IPO long-run performance on the changes of earnings quality at post-IPO period. The research sample is IPOs from year 2007-2017. The research process starts with reviewing literature in IPO performance and financial reporting quality areas. Then, it is followed by developing research models, data collection, and data analysis. The next step is to disseminate the research results in an internal research forum. The reflection of the results and feedback from a research forum will be used on the next stage that is writing up the paper to be submitted to Abacus (an international journal). Additionally, the research results will be adjusted to be learning materials in Accounting Theory course as an enrichment material.

Earnings quality, IPO, IDX, Long-run performance, Underpricing

• Prof. Ir. Yanthi Rumbina Ianova Hutagaol, M.Acc., Ph.D

• Kim Moo Kung, MBA