We study the impact of accelerated vesting of equity awards on takeovers, whereby the restricted stock and/or stock options of the target CEO immediately vest and become unrestricted upon the close of the acquisition. We find that takeover premiums are significantly larger when the target CEO...

This paper investigates the effects of managerial mergers and acquisitions related investment strategies on the exit risk of firms. Using a sample of hyperactive bidders, I show that managerial excessive acquisitiveness can precipitate firm exit. Overbidding is associated with weak corporate...

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...

This study examines whether requiring the disclosure of audited financial statements disciplines managers' mergers and acquisitions (M&A) decisions. When an M&A transaction meets certain disclosure thresholds, the SEC requires the public acquirer to disclose the target's audited financial...

We explore the governance effect of short-selling threat on mergers and acquisitions (M&A). We use equity lending supply (LS) to proxy for the threat, as short sellers' incentives to scrutinize a firm depend on the availability of borrowing shares. Our results show that acquirers with higher LS...