We examine whether earnings myopia among publicly traded companies motivates private equity firms to acquire them. Using a sample of private equity takeovers, we show that multiple measures of myopia increase the likelihood of takeover by private equity buyers. In contrast, private takeovers...

This study examines the relation between principles-based standards and earnings attributes. We create a firm-year specific variable that measures the extent to which firms' financial reporting is affected by principles-based standards. We find that firms' earnings are more informative and...