Earnings management of target firms and deal premiums: The role of industry relatedness
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comunitat-uji-handle2:10234/8648
comunitat-uji-handle3:10234/8649
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INVESTIGACIONMetadata
Title
Earnings management of target firms and deal premiums: The role of industry relatednessDate
2022-03Publisher
ElsevierISSN
0890-8389; 1095-8347Bibliographic citation
Perafán-Peña, H. F., Gill-de-Albornoz, B., & Giner, B. (2022). Earnings management of target firms and deal premiums: The role of industry relatedness. The British Accounting Review, 54(2), 101038. https://doi.org/10.1016/j.bar.2021.101038Type
info:eu-repo/semantics/articlePublisher version
https://www.sciencedirect.com/science/article/pii/S0890838921000640Version
info:eu-repo/semantics/submittedVersionSubject
Abstract
This paper contributes to the merger and acquisitions (M&A) literature by providing evidence for the role of industry relatedness in the association between target firms' earnings management (EM) before the deal and ... [+]
This paper contributes to the merger and acquisitions (M&A) literature by providing evidence for the role of industry relatedness in the association between target firms' earnings management (EM) before the deal and the premium offered by the acquirer. We argue that familiarity with the industry's policies and practices is a crucial factor that helps acquirers to see through targets' EM. Our evidence supports this prediction in relation to accounting manipulation as we observe that the income increasing accrual manipulation of the target results in significantly higher premiums offered by acquirers in interindustry deals, which is not the case when targets and acquirers belong to the same industry. [-]
Is part of
The British Accounting Review, 2022, vol. 54, no 2Funder Name
Fundación Carolina | Ministerio de Ciencia, Innovación y Universidades | Universitat Jaume I
Funder ID
http://dx.doi.org/10.13039/501100011033
Project code
C.2017 | MICIU/ICTI2017-2020/PID2019-111143GB-C33 | UJI-B2020-26
Project title or grant
Multifaceted accounting: From keeping a healthy financial system to esg reporting
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Copyright © British Accounting Association. Published by Elsevier Ltd. All rights reserved.
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http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/openAccess
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