incorporated into the books of the acquirer. The overriding principle of accounting regulation is primacy of economic substance … over legal format. Pursuant to this principle, economic transactions must be recorded in the accounting records in …

This paper explores some consequences for economic efficiency of creative accounting practices by merging companies. It … contracts relating pay to accounting profit.Ahead of takeover, prospective acquirers can flatter their earnings record in order … to secure the support of investors for stock-for-stock deals. During takeover, accounting devices are available to the …

proxies for reporting quality, we find that the reporting quality of these reverse merger (RM) firms, regardless of country of … differential by tempering their reaction to accounting information reported by RM firms, and discounting these firms' equity values … also relevant for the discussion on the costs and benefits of harmonizing accounting standards and for the debate on the …

activity and its accounting implications. The most common procedure to estimate the discount is to compare a conglomerate's q … with that of a benchmark portfolio of focused firms. Under purchase accounting, the acquired assets are reported at their … transaction-implied value in the acquirer's balance sheet. Since the transaction value typically exceeds the target's pre-merger …

Public merger announcements often state which type of merger accounting, pooling or purchase, has been employed. The … choice can strongly influence accounting results. For example, reported earnings are often higher under pooling than purchase … accounting. Yet empirical analysis indicates that the higher earnings reports do not fool investors. Why then do acquisitive …

Does accounting regime play a role in the well-documented phenomenon of overbidding in M&As? The 2001 regulatory change … the consequences of M&A accounting rules for acquirers' bidding decisions. Relying on a novel approach to modeling optimal …&A accounting has real consequences for bidding decisions, and that this result is robust to a battery of sensitivity tests. In …

"Overbidding in Mergers and Acquisitions: An Accounting Perspective" is available at: "https://papers.ssrn.com/sol3/papers …