Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers

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dc.contributor.author Eddey, P
dc.contributor.author Taylor, SL
dc.date.accessioned 2010-05-28T09:54:24Z
dc.date.issued 1999-01
dc.identifier.citation Abacus: a journal of accounting, finance and business studies, 1999, 35 (1), pp. 29 - 45
dc.identifier.issn 0001-3072
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/10150
dc.description.abstract This article investigates whether Australian companies manage their earnings during takeover bids in a manner consistent with the earnings-management hypothesis. This hypothesis predicts that directors who reject a bid use accrual accounting to increase current earnings, supporting their claim that the bid, relative to earnings, is inadequate. Likewise, directors who accept a bid are predicted to use accrual accounting to decrease current earnings. Overall, the results are not consistent with the earnings-management hypothesis. However, some components of unexpected accruals (our proxy for managed earnings) change in the direction predicted by the earnings-management hypothesis, although these changes are not statistically significant. Using industry adjusted performance measures the conclusion is that unexpected accruals are primarily a manifestation of poor financial performance of target firms in the period leading up to the takeover bid.
dc.format No Code
dc.publisher Wiley-Blackwell Publishing Asia
dc.title Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers
dc.type Journal Article
dc.parent Abacus: a journal of accounting, finance and business studies
dc.journal.volume 1
dc.journal.volume 35
dc.journal.number 1 en_US
dc.publocation Australia en_US
dc.identifier.startpage 29 en_US
dc.identifier.endpage 45 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150303 Corporate Governance and Stakeholder Engagement
dc.for 150103 Financial Accounting
dc.for 1501 Accounting, Auditing and Accountability
dc.personcode 104690
dc.percentage 50 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords Accruals; Earnings management; Takeovers. en_US
dc.description.keywords Accruals
dc.description.keywords Earnings management
dc.description.keywords Takeovers.
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Strength - Corporate Governance
utslib.copyright.status Closed Access
utslib.copyright.date 2015-04-15 12:17:09.805752+10
utslib.collection.history Closed (ID: 3)


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