Shareholder wealth effects of pooling-of-interests accounting: Evidence from the SEC's restriction on share repurchases following pooling transactions

Journal of Accounting and Economics

Volumn 37, Issue 1, 2004, Pages 39-57

  Weber, Joseph P ^a  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Accounting choice; Accounting standards; Capital markets; Earnings manipulation; Regulation

Indexed keywords

EID: 1342264811     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jacceco.2003.05.001     Document Type: Article

References (30)

1. Aboody D. Kaznik R. Williams M. Purchase versus pooling in stock-for-stock acquisitions: why do firms care? Journal of Accounting and Economics 29 3 2000 261-286
2. Asquith P. Mullins D. Signaling with dividends, stock repurchases and equity issues Financial Management 15 1986 27-44
3. Ayers B.C. Lefanowicz C.E. Robinson J.R. The financial statement effects of eliminating the pooling-of-interests method of acquisition accounting Accounting Horizons 14 1 2000 1-19
4. Ayers B.C. Lefanowicz C.E. Robinson J.R. Do firms purchase the pooling method? Review of Accounting Studies 7 1 2002 5-32
5. Comment R. Jarrell G.A. The relative signaling power of Dutch auction and fixed-price self-tender offers and open-market share repurchases The Journal of Finance 46 1991 1243-1271
6. Dann L.Y. Common stock repurchases Journal of Financial Economics. 9 1981 113-138
7. Davis M.L. Differential market reaction to pooling and purchase methods The Accounting Review 65 1990 696-709
8. Dittmar A.K. Why do firms repurchase stock Journal of Business 70 3 2000 331-355
9. El-Gazzar S. Negotiated accounting rules in private financial contracts Journal of Accounting and Economics 12 1990 381-396
10. Fields T. Lys T. Vincent L. Empirical research on accounting choice Journal of Accounting and Economics 31 2001 255-307
11. Financial Accounting Standards Board, 1997. Issues Associated with the FASB Project on Business Combinations. FASB, Norwalk, CT.
12. Hong H. Kaplan R. Mandelker G. Pooling vs. purchase: the effects of accounting for mergers on stock prices The Accounting Review. 53 1978 31-47
13. Jensen M.C. Ruback R.S. The market for corporate control: the scientific evidence Journal of Financial Economics. 11 1983 5-50
14. Leftwich, R., 1981. Evidence on the impact of mandatory accounting changes in accounting principles on corporate loan agreements. Journal of Accounting and Economics (March) 3 (1), 3-36.
15. Leftwich, R., 1983. Accounting information in private markets: evidence from private lending agreements. The Accounting Review (January) 58 (1), 23-42.
16. Lie E. Excess funds and agency problems: an empirical study of incremental cash disbursements The Review of Financial Studies 13 1 2000 219-248
17. Lys T. Vincent L. An analysis of value destruction in AT&T's acquisition of NCR Journal of Financial Economics 39 1995 353-378
18. Mulherin J.H. Boone A. Comparing acquisitions and divestitures Journal of Applied Corporate Finance 88 2000 1-23
19. Moehrle, S.R., Reynolds-Moehrle, J.A., Wallace, J.S., 1999. Firms' response to SAB 96: recession of stock repurchase plans to preserve pooling-of-interests treatment for business combinations. University of Missouri-St. Louis. Working paper.
20. Robinson J. Shane P. Acquisition accounting method and bid premium for target firms The Accounting Review 65 1990 25-48
21. Schipper K. Thompson R. Evidence on the capitalized value of merger activity for acquiring firms Journal of Financial Economics 11 1 1983 85-119
22. Schipper K. Thompson R. The impact of merger-related regulations on the shareholders of acquiring firms Journal of Accounting Research 21 1 1983 184-221
23. Sefcik, S., Thompson, R., 1986. An approach to statistical inference in cross-sectional models with security returns as dependent variable. Journal of Accounting Research (Autumn) 24 (2), 316-334.
24. Stephens C. Weisbach M. Actual share reacquisitions in open-market repurchase programs The Journal of Finance 53 1998 313-333
25. Vermaelen T. Common stock repurchases and marketing signaling Journal of Financial Economics 9 1981 139-183
26. Vincent, L., 1997. Equity valuation implications of purchase versus pooling accounting. The Journal of Financial Statement Analysis (Summer) 2, 5-19.
27. Watts R.L. Zimmerman J.L. Positive Accounting Theory 1986 Prentice-Hall Englewood Cliffs, NJ
28. Watts R. Zimmerman J.L. Positive accounting theory: a ten-year perspective The Accounting Review 65 1990 131-156
29. Weber, J., 2000. Shareholder wealth effects of pooling-of-interests. Unpublished Thesis.
30. White H. A heteroscedasticity-consistent covariance matrix estimator and a direct test for heteroscedasticity Econometrica 48 1980 817-838