In December 2007, the FASB revised accounting for business combinations and permitted firms to record a bargain purchase gain within current earnings at the completion of a business combination. Although the FASB contends that the new treatment improves the representational faithfulness of the...

The first convergence project of IASB and FASB created the widely equivalent international and U.S. accounting standards for business combinations IFRS 3 and SFAS 141. The purchase price must be allocated to identifiable assets acquired and liabilities assumed with the residual amount recognized...

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...

In this paper, we investigated the affect of tender offer transactions in Japan from four perspectives. The first one is in regards to the Pecking Order Theory, and the second one concerns the Method-of-Payment Hypothesis. Both of these first two perspectives are related to manager payment...

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 study investigates the role of financial reporting quality in merger and acquisition (M&A) deals that are ultimately terminated, i.e., go bust. If a target is a U.S. publicly-traded company, an acquirer's initial assessment of the potential benefits associated with the acquisition of the...

A large body of literature demonstrates that acquisitions are on average value-destroying for the acquirer. We investigate whether the change in the acquirer's information uncertainty contributes to acquirer wealth losses. Information uncertainty affects the discount rate (the cost of capital),...