2022
DOI: 10.1016/j.bar.2021.101038
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Earnings management of target firms and deal premiums: The role of industry relatedness

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Cited by 12 publications
(14 citation statements)
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“…18 Perafán-Peña et al (2021) find a positive association between EM and the deal premium, which is mitigated for intra-industry transactions. 19 The information was collected through the FactSet database, which follows the definition for insiders defined by the country regulation.…”
Section: Insider Ownershipmentioning
confidence: 89%
See 2 more Smart Citations
“…18 Perafán-Peña et al (2021) find a positive association between EM and the deal premium, which is mitigated for intra-industry transactions. 19 The information was collected through the FactSet database, which follows the definition for insiders defined by the country regulation.…”
Section: Insider Ownershipmentioning
confidence: 89%
“…Following previous studies, we consider that in intra-industry deals (i.e., when the acquirer and the target are in the same industry), the acquirer has an advantage in understating the activities but also the accounting information of the target (C. -W. Chen et al, 2018;Perafán-Peña et al, 2021;Raman et al, 2013). 18 The acquirer may have the same accounting policies and procedures as the target firm (e.g., Cooke, 1992;Jaafar & McLeay, 2007;Meek et al, 1995;Reppenhagen, 2010;Verrecchia, 1983).…”
Section: Industry Relatednessmentioning
confidence: 99%
See 1 more Smart Citation
“…These risks pertain to issues such as target valuation and customer concentration at target firms (Cheng et al, 2022). While studies in this frontier examine a variety of mechanisms/devices for mitigating information asymmetry, including the use of stock (Cheng et al, 2022), contingent considerations such as earnouts (Battauz et al, 2021), seller financing (Jansen, 2020), earnings smoothing (Doukas & Zhang, 2020), sharing of same industry between acquirers and targets (Perafán‐Peña et al, 2022) and other contracting and signalling mechanisms in acquisitions, the predominant focus has been on earnouts. In particular, the research in this cluster documents that in addition to information asymmetry, the acquirer's cultural background (Ewelt‐Knauer et al, 2021), acquirer's earnings quality (Prencipe & Viarengo, 2022) and change in accounting standards (Chaney et al, 2020) can also influence the use of earnouts as a payment method in acquisitions.…”
Section: Research Fronts and Future Directionsmentioning
confidence: 99%
“…, 2019), potential mergers and acquisitions (Erikson and Wang, 1999; Louis, 2004; Campa and Hajbaba, 2016; Mughal et al. , 2021; Perafán-Peña et al. , 2021), launching public offers (Teoh et al.…”
Section: Introductionmentioning
confidence: 99%