Prior US research indicates that acquiring firms pay an additional premium in acquisitions (i.e., pooling transactions) in which they do not need to amortise goodwill. The results of these studies however are subject to endogeneity problems as the accounting method choice and takeover premiums...

This paper investigates the extent to which Australian CEOs are compensated following the completion of mergers and acquisition (M&A) deals with reference to the incentive alignment and managerial power perspective. Findings reveal that CEOs of acquiring firms significantly receive higher...

Prior to December 1999, shareholders that sold their shares into Australian takeovers have been taxable on capital gains irrespective of the form of payment. Subsequent to this date shareholders can elect to rollover gains when equity is received as consideration. We examine the effect of this...

This paper investigates the role of the probability of informed trading (PIN) in mergers and acquisitions. We show that acquirers with higher PINs use more cash to finance their deals due to their higher cost of equity, and acquirers use more equity financing when acquiring targets with higher...

This study investigates if there is a positive association between takeover premiums and the bidder's perception of target firm auditor reputation and independence. Using auditor size as a proxy for audit reputation, the results indicate that target shareholders receive a higher takeover premium...

“Say on pay” legislation has been introduced in several countries but Australia's version, namely the “two-strikes” rule, is unique in that it empowers shareholders to vote on a board spill if the compensation report of a public company receives 25% or more dissenting votes for two...

We examine a firm’s decision to announce a cut to CEO pay in response to challenges arising from the COVID-19 pandemic. The rationale behind these announcements and the extent of the pay cuts, however, have been widely questioned. Specifically, we examine whether the announcement of a CEO pay...