search query: @author Erickson, M. / total: 3
reference: 2 / 3
| Author: | Erickson, M. Wang, S. |
| Title: | Earnings management by acquiring firms in stock for stock merger |
| Journal: | Journal of Accounting & Economics
1999 : APR, VOL. 27:2, p. 149-176 |
| Index terms: | Mergers Earnings Stock markets Prices Accounting USA |
| Language: | eng |
| Abstract: | In this paper, it is investigated whether acquiring firms attempt to increase their stock price prior to a stock for stock merger to reduce the cost of buying the target. In a sample of stock for stock mergers completed btw. 1985 and 1990, the study finds that acquiring firms manage earnings upward in the periods prior to the merger agreement. The results also indicate that the degree of income increasing earnings management is positively related to the relative size of the merger. |
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