Similar Search Results

Acquirers’ Earnings Management Ahead of Stock-for-Stock Bids in 'Hot' and 'Cold' Markets

Botsari, Antonia - 2018

The accounting literature has found evidence that acquirers in stock-for-stock M&A have typically managed earnings upwards ahead of a bid. Other literatures have concluded that, when stock prices are high and rising, M&A is higher, more M&A is financed with stock, market sentiment and...

Persistent link: https://www.econbiz.de/10012911666

Does Threat of Takeover Affect Default Risk?

Balachandran, Balasingham - 2019

We find that the threat of takeover has a negative relation with default risk. The result is robust to alternative … identify improvement in performance and earnings quality in response to the threat of takeover as channels underlying our main … result. We find that the threat of takeover on default risk is more pronounced for firms with low information asymmetry and …

Persistent link: https://www.econbiz.de/10012893066

The Disciplinary Role of Financial Statements : Evidence from Mergers and Acquisitions of Privately Held Targets

Chen, Ciao-Wei - 2019

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...

Persistent link: https://www.econbiz.de/10012895296

The Change of the Value Relevance of Accounting Information After Mergers and Acquisitions : Evidence From the Adoption of SFAS 141(R)

Kwon, Shin Hyoung - 2019

This study examines how and why investors change the use of their information sources in valuation between book value and earnings after mergers and acquisitions (M&A) in both pre- and post-SFAS 141(R) periods. We find that investors generally put less weight on earnings but more weight on book...

Persistent link: https://www.econbiz.de/10012897720

Speculative Components in M&A Purchase Prices, Acquirers’ Long-Term Performance, and Goodwill Estimation

Oh, Hyung Il - 2018

This study proposes and estimates a fundamental-analysis-based approach to identifying speculative components in merger and acquisition (M&A) purchase prices. I estimate the speculative component of the price as the portion that cannot be explained by the book value of the target plus a multiple...

Persistent link: https://www.econbiz.de/10012935383

Trade-Offs between Tax and Financial Reporting Benefits : Evidence from Purchase Price Allocations in Taxable Acquisitions

Lynch, Dan - 2018

Under U.S. GAAP, firms recognize assets acquired in business combinations at fair value. Similarly, in taxable asset acquisitions firms adjust the tax basis of assets to fair value. Managers can increase the present value of future tax savings by allocating a greater portion of the purchase...

Persistent link: https://www.econbiz.de/10012937488

Does Short-selling Threat Discipline Managers in Mergers and Acquisitions Decisions?

Chang, Eric C. - 2018

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...

Persistent link: https://www.econbiz.de/10012938253

Financial Statement Comparability and the Efficiency of Acquisition Decisions

Chen, Ciao-Wei - 2018

This study examines whether acquirers make better acquisition decisions when target firms' financial statements exhibit greater comparability with industry peer firms. We predict and find that acquirers make more profitable acquisition decisions when target firms' financial statements are more...

Persistent link: https://www.econbiz.de/10012938653

The Corporate Governance Roles of Information Quality and Corporate Takeovers

Li, Jing - 2018

We examine the corporate governance roles of information quality and the takeover market with asymmetric information … regarding the value of the target firm. Increasing information quality improves the takeover efficiency, however, a highly … efficient takeover market also discourages the manager from exerting effort. We find that perfect information quality is not …

Persistent link: https://www.econbiz.de/10012940178

Earnings-Reducing Activities Before Management Buyouts

Li, Xi - 2017

During the year prior to management buyout (MBOs) announcements, target firms exhibit abnormally high discretionary expenses in selling, general and administration, abnormally low discretionary accruals, and realize losses from asset sales. Higher discretionary expenses and losses from asset...

Persistent link: https://www.econbiz.de/10012946096