We examine the impact of climate change risk on the performance of newly listed firms. Using a sample of IPO firms from 2000 to 2020, we find that the volume of firms going public is higher when the climate risk is lower. Similarly, IPOs located in states with more exposure to climate risk are...

We find that IPO firms engage in real and accrual earnings management during the IPO and that big-N audit firms constrain discretionary expenses-based and accrual-based manipulations. The restriction of these forms of earnings management leads IPO firms to resort to a higher level of sales-based...