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The Impact of SFAS No. 141 on Earnings Predictability of Merging Firms : Evidence from the Initial Year of Implementation

Mintchik, Natalia M. - 2010

This study examines the impact of SFAS 141 on earnings predictability of merging firms. I expect a relative improvement in analysts' earnings forecast accuracy for merging firms versus non-merging peers after SFAS 141 adoption. I restrict the post-SFAS 141 sample to the initial year of SFAS 141...

Persistent link: https://www.econbiz.de/10013147353

Trapped Cash and the Profitability of Foreign Acquisitions

Edwards, Alexander - 2014

Current U.S. reporting and tax laws create an incentive for some U.S. firms to avoid the repatriation of foreign earnings as the U.S. government charges additional corporate taxes on these transfers. Prior research suggests that the combined effect of these incentives leads some U.S....

Persistent link: https://www.econbiz.de/10013066867

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

Kim, Taewoo - 2020

, accounting conservatism in target firm accounting can hinder acquirers from identifying a potentially profitable target while it … investors pay larger takeover premiums to a more conservative target firm. Overall, our findings suggest that unlike other … accounting conservatism benefits the shareholders of both the acquirer and the target …

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

Comparing Non-GAAP EPS in Earnings Announcements and Proxy Statements

Black, Dirk E. - 2020

We compare non-GAAP EPS in annual earnings announcements and proxy statements using hand-collected data from SEC filings. We find that proxies for capital market incentives (contracting incentives) are more highly associated with disclosure of non-GAAP EPS in annual earnings announcements (proxy...

Persistent link: https://www.econbiz.de/10012856894

Determinants of Purchase Price Allocation Decisions - Accounting for Goodwill In IFRS and US-GAAP Business Combinations

Ott, Christian - 2011

The first convergence project of IASB and FASB created the widely equivalent international and U.S. accounting standards for business combinations IFRS 3 and SFAS 141. The purchase price must be allocated to identifiable assets acquired and liabilities assumed with the residual amount recognized...

Persistent link: https://www.econbiz.de/10013133236

Economic Determinants and Information Environment Effects of Earnouts : New Insights from SFAS 141(R)

Cadman, Brian D. - 2013

Contingent considerations (“earnouts”) in acquisition agreements provide sellers with future payments conditional on meeting certain conditions. Prior research provides evidence that acquiring firms use earnouts to minimize agency costs associated with acquisitions. Using earnout fair value...

Persistent link: https://www.econbiz.de/10013091195

The Change of the Value Relevance of Accounting Information After Mergers and Acquisitions : Evidence From the Adoption of SFAS 141(R)

Kwon, Shin Hyoung - 2019

This study examines how and why investors change the use of their information sources in valuation between book value and earnings after mergers and acquisitions (M&A) in both pre- and post-SFAS 141(R) periods. We find that investors generally put less weight on earnings but more weight on book...

Persistent link: https://www.econbiz.de/10012897720

The Effect of SFAS 141 and 142 on the Likelihood and the Form of Financing of Corporate Takeovers

Ali, Ashiq - 2016

, under SFAS 142, on the form of acquisition financing and on a firm's takeover probability. We find that before these … rules also led to a greater decrease in takeover probability for firms with larger predicted step-up values, and this effect … both the pooling method and the method for goodwill amortization are significant determinants of takeover probability …

Persistent link: https://www.econbiz.de/10013008252

Economic Determinants and Information Environment Effects of Earnouts : New Insights from SFAS 141(R)

Cadman, Brian D. - 2014

Contingent considerations (earnouts) in acquisition agreements provide sellers with future payments conditional on meeting certain conditions. Prior research provides evidence that acquiring firms use earnouts to minimize agency costs associated with acquisitions. Using earnout fair value...

Persistent link: https://www.econbiz.de/10013057714

Market Reactions to Accounting Policy Choices for Mergers and Acquisitions : Evidence for the Japanese Adoption of International Accounting Standards

Yosano, Tadanori; Shimada, Yoshinori - 2010

The purpose of this paper is to explore, through M&As accounting policies, whether the Japanese adoption of IFRS is favorable for market participants. M&As are excellent prototypes for this study, because they have a substantial impact upon firms’ financial statements. Additionally, Japanese...

Persistent link: https://www.econbiz.de/10014190430