This paper proposes and tests two roles for summary accounting data in explaining cross-sectional variation in takeover premia. We propose that the target's excess stock return at a takeover bid announcement reflects an expectation that the bidder will extract operating efficiency benefits...

DO NOT EDIT CONTENT OF THIS CASE. IT MUST MATCH THE CAMBRIDGE BOOK VERSION (2009) EXACTLY. FORMATTING MAY BE UPDATED AS NECESSARY. Marlene Baer, the controller of Breeden Security USA, recognizes that grouping all manufacturing overhead costs together and allocating them to Breeden's two...

This case is designed for an introductory MBA management accounting course or an MBA course in management planning and control systems. It provides exposure to (1) the basic assumptions in the creation of an operating plan; (2) analyzing the difference in actual and planned financial results,...

In this study we examine the valuation implications for different sources of growth. Specifically, we investigate whether supplemental information provided by firms to assist financial statement users in understanding the sources of growth is reflected in a premium to those firms. We examine a...

We investigate the association between aggressive tax and financial reporting and find a strong, positive relation. Our results suggest that insufficient costs exist to offset financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax law...