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's takeover of the Italian company Nouvo Pignone as an instance. The systems are an essential element in the expansionary …
Persistent link: https://www.econbiz.de/10013160457
financial reports, i.e., in the misreporting period. Drawing upon finance theory that recognizes banks' superior information …
Persistent link: https://www.econbiz.de/10012971335
Mergers and acquisitions (M&As) are an important aspect of corporate finance. To better understand the factors affecting market reactions to M&As, we examine market responses to M&As with private and public targets both at the time of announcement and after completion. Using a sample of over...
Persistent link: https://www.econbiz.de/10012850378
This paper investigates the role of the probability of informed trading (PIN) in mergers and acquisitions. We show that acquirers with higher PINs use more cash to finance their deals due to their higher cost of equity, and acquirers use more equity financing when acquiring targets with higher...
Persistent link: https://www.econbiz.de/10012853027
Exploiting the staggered adoption of country-level takeover laws that increased takeover threats, this paper examines …-in-difference design, I find that the enactment of laws designed to promote takeover activity is associated with greater earnings …, and price impact of trades) following takeover regulation. Impact on earnings management is most pronounced for managers …
Persistent link: https://www.econbiz.de/10012853781
This paper analyzes a manager's optimal ex-ante reporting system using a Bayesian persuasion approach (Kamenica and Gentzkow (2011)) in a setting where investors affect cash flows through their decision to finance the firm's investment opportunities, possibly assisted by the costly acquisition...
Persistent link: https://www.econbiz.de/10012988283
Prior studies suggest that private firms pay less for acquisitions compared to public firms. In this study, we examine whether there are differences in the tax characteristics of target firms acquired by public and private bidders and whether such differences can explain variations in the...
Persistent link: https://www.econbiz.de/10013221495
In merger agreements, the seller makes contractual representations and warranties (“reps”) about the state of the target, e.g., attesting to the accuracy of the target’s financial statements. We obtain a proprietary sample of claims for breaches of the reps in acquisition agreements...
Persistent link: https://www.econbiz.de/10013247701
To address the question as to whether managers manipulate accounting numbers downwards prior to management buyouts (MBOs), we implement an industry-adjusted buyout-specific approach and receive an affirmative answer. In UK buyout companies, negative earnings manipulation (understating the...
Persistent link: https://www.econbiz.de/10013035013
. Using a sample of private equity takeovers, we show that multiple measures of myopia increase the likelihood of takeover by … myopia measures, nor do takeovers by public firms. We further show that post-takeover, firms exhibit significantly less … sufficiently large to warrant a takeover by private equity and contributes to the shrinking number of publicly traded firms …
Persistent link: https://www.econbiz.de/10013212865