In 2006, the China Accounting Standards Committee (CASC) issued its Statement No. 20, which permits both the purchase and pooling of interests (or merger) method of accounting for business combinations. The decision of the CASC in Statement No. 20 stands in contrast to the decisions taken by the...

Given the emphasis in recent years on reorganizing operations, as strategies for achieving the medium and long term objectives of the companies, this paper aims to enable a theoretical study on the subject of mergers between companies, by analyzing the recent literature regarding this subject,...

Given the emphasis in recent years on reorganizing operations, as strategies for achieving the medium and long term objectives of the companies, this paper aims to enable a theoretical study on the subject of mergers between companies, by analyzing the recent literature regarding this subject,...

The adoption of International Financial Reporting Standards (IFRS) in Australia in 2005 resulted in goodwill accounting shifting from systematic annual amortisation to impairment testing. We examine whether IFRS adoption changed the association between takeover premiums and the difference...

The present study focuses upon the comparison between the pre and post merger financial performance of the Indian companies undertaking cross border mergers and acquisitions during 1998-2009. An attempt has been made to assess the performance on an aggregate basis, on the basis of timing of the...

We test whether geographical location, audit quality and equity offering play a role in the earnings quality of Reverse Merger (RM) firms. We provide evidence that, contrary to the popular focus by the business press, earnings management happens in both U.S. and international RM companies. We...

We provide evidence suggesting that managers use financial statement misstatements which improve reported results to facilitate acquisitions. Specifically, we find that firms misstating their financial statements are more likely to make stock-based acquisitions, but not cash-based acquisitions,...

Exploiting the staggered enactment of country-level mergers and acquisitions (M&A) law as an exogenous increase in corporate takeover threat, this paper examines how a disciplinary market for corporate control affects accounting conservatism. Following M&A law adoption, we find increased...

Using unique, hand-gathered data, this paper examines how public news about the target firmreleased publicly during the private merger negotiation process affects bidding strategies. Weprovide strong evidence that market reactions to information events during the private sale processhave a...

We find that bidders are more likely to hold conference calls at merger announcements when the mergers are financed with stock and when the transactions are large. After controlling for endogeneity, we also find that conference calls are associated with more favorable market reactions to merger...