Earnings Management of Acquiring Firms in Stock-for-Stock Takeovers in the Telecommunications Industry

Lee, Hyeongjik; Kim, Seong-Cheol; Nam, Changi; Han, Seung Hun

doi:10.1080/08997760802541117

Cited by 8 publications

(4 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…As conclusões de Louis (2004) também são confirmadas por Lee et al (2008), ficando entendido que há um efeito negativo na riqueza em curto prazo ao longo dos dias em torno dos anúncios de F&A stock-for-stock, e essa riqueza tem relação inversa com o EM. A pesquisa de Lee et al (2008) investigou se as adquirentes de empresas de telecomunicações gerenciaram resultados por meio de accruals discricionários antes do anúncio da F&A stock-for-stock; os resultados mostram que as adquirentes gerenciam os resultados para cima visando ao aumento do lucro.…”

Section: Os Resultados Sugerem Que O Baixo Desempenho Das Companhiasunclassified

Fusões, Aquisições e Gerenciamento de Resultados: uma revisão sistemática envolvendo diferentes categorias analíticas

Bispo

Maia

Barros

et al. 2017

ROC

View full text Add to dashboard Cite

O objetivo geral foi realizar uma revisão bibliográfica sistemática nos artigos disponíveis na base Web of Science que pesquisaram o gerenciamento de resultados (EM) concomitante às transações de Fusões e Aquisições (F&A). Especificamente: i) verificar quais foram as principais discussões sobre o tema; ii) criar categorias analíticas para ordenar as discussões; e, iii) elaborar uma síntese do conhecimento existente sobre o assunto. A amostra envolveu 40 artigos registrados entre os anos de 1945 e nov/2016. Foi utilizado o método de revisão bibliográfica sistemática para a análise de conteúdo qualitativa. As estratégias de busca utilizaram rótulos de campo e operadores boolianos com expressões definidas a priori. Os resultados apontam 11 categorias analíticas e, pelo menos, 43 elementos essenciais inerentes a essas categorias. Grande maioria dos resultados mostra que há interesse na utilização do EM próximo aos anúncios e efetivação das F&A. Diversos pesquisadores analisaram o EM voltado para manipulação dos accruals no sentido de elevar o lucro. Outros, em menor quantidade, introduziram a importância de verificar as manipulações de atividades reais com base na DFC. Trabalhos futuros poderiam relacionar information asymmetry com as transações de F&A e as potenciais interferências do EM, tanto por accruals quanto por atividades reais.

show abstract

Section: Os Resultados Sugerem Que O Baixo Desempenho Das Companhiasunclassified

Fusões, Aquisições e Gerenciamento de Resultados: uma revisão sistemática envolvendo diferentes categorias analíticas

Bispo

Maia

Barros

et al. 2017

ROC

View full text Add to dashboard Cite

show abstract

“…The different levels of earnings management within the diverse industries is confirmed by the papers found in the literature. As for the Telecommunications industry, some authors deem it worth studying due to the existing degree of earnings management variation across industries (Lee et al, 2008); at the same time, the "Utilities" industry has a strictly regulated accounting data, (Healy and Wahlem, 1999) which could be considered one of the reasons why earnings management is less evident if compared with others sectors.…”

Section: Discussionmentioning

confidence: 99%

Does the IFRS 15 impact earnings management? Initial evidence from Italian listed companies

Tutino¹,

Regoliosi²,

Mattei³

et al. 2019

Afr. J. Bus. Manage.

View full text Add to dashboard Cite

The purpose of the present work was to gauge the extent of the impact on earnings management derived from the adoption of International Financial Reporting Standards (IFRS) 15 as well as detecting whether the impact will be similar in different industries. To provide empirical evidence that earnings management is more frequent in some industries and less frequent in others by means of a statistical analysis, a sample of Italian listed companies in the period 2001-2017 was observed. Specifically, companies belonging to two sectors were selected: "Telecommunications" and "Utilities". The Jones Model was applied. The statistical analysis brought to light that earnings management practices are "commonly adopted" in the "Telecommunications" industry, which is consequently highly impacted by the introduction of IFRS 15. That being said, the lesson learned from this study is that the implementation of the new principle, written to discipline the accountancy of revenues, and its consequences, must be carefully analyzed and monitored by the regulators, as well as correctly adopted by managers, as the determined revenues could have an impact on the pre-existing earning management practices. The scientific contribution of the present research also concerns the predictions on the behavior of managers that can be foreseen considering the agency theory; therefore, knowing ex-ante in which industries earnings management has a high impact, provides the option to foresee the hypothetical moves of the managers in the implementation of IFRS 15.

show abstract

“…In general, this approach provides researchers with a powerful tool to assess the links between managerial decisions and actions and the resulting value created for a firm [20] by measuring the impact of a specific event on the firm's market value [21]. Therefore, it has been widely used to not only see if takeovers had a positive/negative effect on shareholder wealth [22]- [25] but also to evaluate the economic effects of classes of phenomena that would otherwise be hard to measure [26]. As mentioned in [8], no one knows whether the companies paid too much; thus, the event study approach is not a perfect method to judge if there is a winner's curse in spectrum auctions.…”

Section: Event Study Methodsmentioning

confidence: 99%

Identifying the Winner's Curse in the First Spectrum Auction in the Republic of Korea Using an Event Study Approach

2013

Self Cite

View full text Add to dashboard Cite

The first spectrum auction in the Republic of Korea is attention‐worthy owing to the fierce competition for the only 1.8‐GHz spectrum license, the winning bidder of which was suspected of overpaying for its acquisition. This study empirically investigates the existence of a “winner's curse” in the first Korean spectrum auction by using a standard event study methodology. The results show that both the winner and loser experienced significant positive returns on the completion day of the auction. The results imply that there was no winner's curse in the auction and that the losing firm might increase its competitive advantage by acquiring other spectrum licenses despite failing to achieve its initial target spectrum. Therefore, these results suggest that regulators may need to consider bringing about positive short‐term wealth benefits to all bidders by appropriately designing a spectrum auction, such as by performing multiband auctions.

show abstract

Earnings Management of Acquiring Firms in Stock-for-Stock Takeovers in the Telecommunications Industry

Cited by 8 publications

References 20 publications

Fusões, Aquisições e Gerenciamento de Resultados: uma revisão sistemática envolvendo diferentes categorias analíticas

Fusões, Aquisições e Gerenciamento de Resultados: uma revisão sistemática envolvendo diferentes categorias analíticas

Does the IFRS 15 impact earnings management? Initial evidence from Italian listed companies

Identifying the Winner's Curse in the First Spectrum Auction in the Republic of Korea Using an Event Study Approach

Contact Info

Product

Resources

About