CADMAN, BRIAN; CARRIZOSA, RICHARD; FAUREL, LUCILE - In: Journal of Accounting Research 52 (2014) 1, pp. 37-74
type="main" <title type="main">ABSTRACT</title> <p>Contingent considerations (earnouts) in acquisition agreements provide sellers with future payments conditional on meeting certain conditions. Prior research provides evidence that acquiring firms use earnouts to minimize agency costs associated with acquisitions. Using...</p>