Earnings management and the market performance of acquiring firms

By Henock Louis. 2004

507 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/6845da3caef26a8873e3a77775f8860c7682aaaa

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Citations in the corpus

Corporate Governance Convergence : Evidence from Takeover Regulation Reforms in Europe (2005, background): “However, hostile takeovers may constitute a disruptive and costly mechanism to bring about a change in control as the vast majority of the takeovers does not yield the anticipated synergistic value increase (Gregory (1997), Dickerson, Gibson and Tsakalotos (1997), Rau and Vermaelen (1998), Ghosh (20”
Institutional Cross-Ownership and Corporate Strategy: The Case of Mergers and Acquisitions (2018, unknown): “Before the M&A announcement, both acquirers (Louis, 2004; Gong et al., 2008) and targets (Anilowski et al., 2009) have an incentive to actively manage their earnings.”
Earnings Management and Firm Performance Following Open-Market Repurchases (2008, unknown): “However, prior studies find that investors fail to completely undo the stock price effects of earnings management around various corporate events (e.g., Teoh, Welch, and Wong 1998a and 1998b; Louis 2004).”
The effect of target-firm accounting quality on valuation in acquisitions (2014, unknown): “Erickson and Wang (1999) and Louis (2004) find evidence of earnings management by acquirers prior to acquisitions.”
The Effects of Firm Growth and Model Specification Choices on Tests of Earnings Management in Quarterly Settings (2017, background): “We examine tests for earnings management in quarterly settings around stock splits (Louis and Robinson 2005), seasoned equity offerings (Rangan 1998), and stock-for-stock acquisitions (Louis 2004; Gong et al. 2008).”
Hometown advantage: The effects of monitoring institution location on financial reporting discretion (2011, unknown): “Following Louis and Robinson (2005), we include a stock split during the sample period 1996–2007 in our sample if it is not taxable (i.e., CRSP distribution code¼5523).”
Do Firms Manage Earnings to Meet Dividend Thresholds (2008, unknown): “These studies conclude that firms manage earnings around stock offers (Teoh et al., 1998a, b; Shivakumar, 2000; DuCharme et al., 2004; Bergstresser et al., 2006) and acquisitions (Bergstresser et al., 2006; Louis, 2004).”
Do Managers Intentionally Use Repurchase Tender Offers to Signal Private Information? Evidence from Firm Financial Reporting Behavior (2007, background): “However, prior studies find that investors fail to completely undo the stock price effects of earnings management around corporate events such as equity offerings and stock-for-stock mergers (Teoh, Welch, and Wong, 1998a, b; Louis, 2004 ).”
Do More Reputable Financial Institutions Reduce Earnings Management by IPO Issuers (2011, methodology): “Following the extant literature (Teoh et al., 1998a, 1998b; Louis, 2004; Louis and White, 2007; Gong et al. , 2008a, 2008b, Louis et al., 2008), we proxy for EM by the level of a firm’s abnormal accruals using the residual from a modified version of the Jones (1991) accruals model.”
Proprietary Costs and the Disclosure of Information About Customers (2012, unknown): “Washington University, St. Louis, 2004.”
Common Auditors in M&A Transactions (2016, unknown): “Specifically, with respect to auditor characteristics, we control for whether the acquirer and/or target have a Big 4 auditor, Big 4 Auditor, as Louis (2004) finds that acquirers audited by non–Big 4 firms outperform those audited by Big 4 firms, and Xie et al. (2013) and Golubov et al. (2012) show…”
Using Nonfinancial Measures to Assess Fraud Risk (2009, background): “Firms have incentives to manage earnings prior to an acquisition in order to raise their stock price (Erickson and Wang 1999; Louis 2004).10 BIG FOUR is a measure of audit quality and opportunity.”