Earnings management by acquiring firms in stock for stock mergers

Journal of Accounting and Economics

Volumn 27, Issue 2, 1999, Pages 149-176

  Erickson, Merle ^a   Wang, Shiing Wu ^b  

^a UNIVERSITY OF CHICAGO   (United States)

^b UNIVERSITY OF SOUTHERN CALIFORNIA   (United States)

Author keywords

Earnings management; G34; M41; Mergers

Indexed keywords

EID: 0000718767     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-4101(99)00008-7     Document Type: Article

References (29)

1. Aharoney J., Lin C., Loeb M. Initial public offerings, accounting choices and earnings management. Contemporary Accounting Research. 10:1993;61-81.
2. Amihud Y., Lev B., Travlos N. Corporate control and the choice of investment financing: The case of corporate acquisitions. Journal of Finance. 45:1990;603-616.
3. Ball R., Brown P. An empirical evaluation of accounting income numbers. Journal of Accounting Research. 6:1968;159-178.
4. Beaver W., Clarke R., Wright W. The association between unsystematic security returns and the magnitude of earnings forecast errors. Journal of Accounting Research. 17:1979;316-340.
5. Bowen R., Burgstahler D., Daley L. Evidence on the relationships between earnings and various measures of cash flow. The Accounting Review. 61:1986;713-725.
6. Cahan S. The effect of antitrust investigations on discretionary accruals. A refined test of the political cost hypothesis The Accounting Review. 65:1992;77-95.
7. DeAngelo H., DeAngelo L., Skinner D. Accounting choice in troubled companies. Journal of Accounting and Economics. 17:1994;113-143.
8. DeAngelo L. Accounting numbers as market valuation substitutes. A study of management buyouts of public stockholders The Accounting Review. 67:1986;77-96.
9. DeAngelo L. Equity valuation and corporate control. The Accounting Review. 65:1990;93-112.
10. Dechow P., Sloan R., Sweeney A. Detecting earnings management. The Accounting Review. 70:1995;193-225.
11. Dechow P., Sloan R., Sweeney A. Causes and consequences of earnings manipulation. An analysis of firms subject to enforcement actions by the SEC Contemporary Accounting Research. 13:1996;1-36.
12. DeFond M., Jiambalvo J. Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics. 17:1994;145-176.
13. Financial Accounting Standards Board, 1970. Accounting Principles Board Opinion No. 16. Business Combinations, FASB, Norwalk, CT.
14. Foster G. Quarterly accounting data. Time series properties and predictive ability results The Accounting Review. 52:1977;1-21.
15. Friedlan J. Accounting choices by issuers of initial public offerings. Contemporary Accounting Research. 11:1994;1-31.
16. Han J., Wang S. Political costs and earnings management of oil companies during the 1990 Persian Gulf crisis. The Accounting Review. 73:1998;103-117.
17. Healy P. The impact of bonus schemes on the selection of accounting principles. Journal of Accounting and Economics. 7:1985;85-107.
18. Hertzberg D., Richards B., Waldholz M. May proposes to buy other retailer. The Wall Street Journal. 3:1986;12.
19. Hirsch J. Fleet's Murray uses creativity to clinch deals. The Wall Street Journal. B1, B4:1995.
20. Jiambalvo J. Discussion of causes and consequences of earnings manipulation. An analysis of firms subject to enforcement actions by the SEC Contemporary Accounting Research. 13:1996;37-47.
21. Jones J. Earnings management during import relief investigations. Journal of Accounting Research. 29:1991;193-228.
22. Kmenta, J., 1971. Elements of Econometrics. Macmillan, New York, NY.
23. Liberty S., Zimmerman J. Labor union contract negotiations and accounting choices. The Accounting Review. 61:1986;692-712.
24. Maddala, G., 1977. Econometrics. McGraw Hill, New York, NY.
25. Morck R., Schliefer A., Vishny R. Management ownership and market valuation. An empirical analysis Journal of Financial Economics. 20:1988;293-316.
26. Perry S., Williams T. Earnings management preceding management buyout offers. Journal of Accounting and Economics. 18:1994;157-179.
27. Teoh S., Welch I., Wong T. Earnings management and the long run underperformance of seasoned equity offerings. Journal of Financial Economics. 50:1998;53-100.
28. Teoh, S., Welch I., Wong, T., 1998b. Earnings management and the subsequent market performance of initial public offerings. Journal of Finance, forthcoming.
29. Watts R., Zimmerman J. Positive Accounting Theory. 1986;Prentice-Hall, Englewood Cliffs, NJ.