Tang, Qingquan; Guo, Jingjing; Huang, Zhihong - In: China journal of accounting research : CJAR 14 (2021) 4, pp. 1-22
great risks. We investigate the role of accounting conservatism in M&A target selection and risk. We find that for risk …-averse reasons, firms with high accounting conservatism are likely to acquire profitable targets and avoid loss-making targets. When …. Furthermore, accounting conservatism reduces risk by increasing the maturity match between cash flow and debt. Our results suggest …