Francis, Jere R.; Martin, Xiumin - In: Journal of Accounting and Economics 49 (2010) 1-2, pp. 161-178
We investigate if timely loss recognition is associated with acquisition-investment decisions. Using a Basu (1997) piece-wise linear regression model, we find that firms with more timely incorporation of economic losses into earnings make more profitable acquisitions, measured by the bidder's...
