Do acquirers manage earnings prior to a share for share bid?
Botsari, Antonia and Meeks, Geoffrey. (2008) Do acquirers manage earnings prior to a share for share bid? Journal of Business Finance & Accounting, Vol.35 (No.5-6). pp. 633-670. ISSN 0306-686XFull text not available from this repository.
Official URL: http://dx.doi.org/10.1111/j.1468-5957.2008.02091.x
Earnings management by acquirers ahead of share for share bids may affect whether a bid succeeds, and hence which management team controls the target's assets, as well as the distribution of gains between target and acquirer shareholders. This paper tests for such earnings management for the UK, the world's second largest takeover market, in the period 1997-2001 when M&A reached record levels and share for share deals came to account for the majority of expenditure. Using a range of approaches originating in Jones' model, the paper finds evidence consistent with earnings management ahead of share-financed bids.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
|Divisions:||Faculty of Social Sciences > Warwick Business School > Accounting
Faculty of Social Sciences > Warwick Business School
|Library of Congress Subject Headings (LCSH):||Consolidation and merger of corporations, Earnings management, Liabilities (Accounting)|
|Journal or Publication Title:||Journal of Business Finance & Accounting|
|Publisher:||Wiley-Blackwell Publishing Ltd.|
|Number of Pages:||38|
|Page Range:||pp. 633-670|
|Access rights to Published version:||Restricted or Subscription Access|
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