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The Effect of International Takeover Laws on Corporate Resource Adjustments : Market Discipline And/Or Managerial Myopia?

Cannon, James N. - 2020

Practitioners often claim that takeover pressure induces managerial myopia (short-termism), but academic research … provides limited empirical evidence supporting this assertion. This study fills this void by investigating how takeover threat … laws across countries as exogenous shocks that facilitate takeover transactions and increase takeover threat. While we find …

Persistent link: https://www.econbiz.de/10012823508

The Spillover Effect of Financial Information in Mergers and Acquisitions

Wu, Cen - 2020

In this study we investigate whether and how a firm's investment activities are affected by the financial information of peer firms on merger and acquisition (M&A) efficiency. Using changes in M&A accounting performance to measure efficiency, we find a positive association between the post-M&A...

Persistent link: https://www.econbiz.de/10012823837

Target Firm Accounting Conservatism and Corporate Acquisitions : Transferring Wealth or Benefiting Both?

Kim, Taewoo - 2020

investors pay larger takeover premiums to a more conservative target firm. Overall, our findings suggest that unlike other …

Persistent link: https://www.econbiz.de/10012825767

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&As) decisions. When an M&A transaction meets certain disclosure thresholds, the Securities and Exchange Commission (SEC) requires the public acquirer to disclose...

Persistent link: https://www.econbiz.de/10012868224

International Mergers and Acquisitions Laws, the Market for Corporate Control, and Accounting Conservatism

Khurana, Inder K. - 2019

corporate takeover threat, this paper examines how a disciplinary market for corporate control affects accounting conservatism … shareholder protection and in those experiencing larger growth in takeover activity. Further analysis reveals that elevated … takeover threats increase conservatism through changes in capital structure and investment decisions as well as improvements in …

Persistent link: https://www.econbiz.de/10012869479

Stock Payment Acquirer's Pre-Acquisition Earnings Management and Its Post-Acquisition Performance

Alphonse, Pascal - 2017

For an M&A context, this paper investigates stock payment acquirers' trade-off strategy between accruals-based earnings management (AM) and real earnings management (REM) and it impacts on firm's post-acquisition performance during the period before and the period after the Sarbanes-Oxley Act...

Persistent link: https://www.econbiz.de/10012969020

The Effects of Anticipated Future Investments on Firm Value : Evidence from Mergers and Acquisitions

Zhang, Ning - 2017

I examine the long-term valuation consequence of investment in mergers and acquisitions on acquiring firms through the “anticipation effect,” in which forward-looking prices embed investors' expectations about the profitability of firms' future acquisitions. Using a sample of firms with past...

Persistent link: https://www.econbiz.de/10012970000

Shareholder Wealth Effects of Corporate Governance Deficiencies on Nasdaq

Frost, Carol Ann - 2017

The Nasdaq Stock Market's enforcement activities offer a unique setting for investigating the consequences of changes in corporate governance as evidenced by deficiency notices. We document significant negative abnormal returns in response to Nasdaq deficiency notices for audit committee and...

Persistent link: https://www.econbiz.de/10012972580

Return to Invested Capital and the Performance of Mergers and Acquisitions

Qian, Jun - 2017

We evaluate the efficiency of capital deployment for acquiring firms before M&As, defined as the return on invested capital net of the cost of capital, and link this measure to firms' post-acquisition performance. Acquirers with higher, pre-acquisition net returns on investment have superior...

Persistent link: https://www.econbiz.de/10012973061

Tax Avoidance as a Driver of Mergers and Acquisitions

Belz, Thomas - 2017

Following a merger or acquisition, a target firm's effective tax rate decreases on average by 3 percentage points. This decline is as high as 8 percentage points when the acquiring firm is tax aggressive. Further, target firm profitability decreases, particularly in the case of targets having a...

Persistent link: https://www.econbiz.de/10012973653