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Journal of Economics and Finance

Erschienen in:

09.01.2020

Real activities manipulation in stock-for-stock mergers

verfasst von: Olukemi Fasipe, Huey-Lian Sun

Erschienen in: Journal of Economics and Finance | Ausgabe 3/2020

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Abstract

This study examines whether firms that primarily use stock of their companies to pay for acquisitions manipulate real activities in the year preceding the merger announcement to inflate earnings. Using post-SOX data of mergers and acquisitions completed between 2003 and 2013, the findings of this study show that acquiring firms in stock-for-stock mergers inflate earnings by cutting discretionary expenses, manipulating sales to increase revenue, and overproducing goods to reduce the cost of goods sold.

Vorheriger Artikel Long-run memory in ethical and conventional investments. Novel evidence from a VAR(1)-FIEGARCH model

Nächster Artikel Market fragmentation and post-earnings announcement drift

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Titel: Real activities manipulation in stock-for-stock mergers
verfasst von: Olukemi Fasipe
Huey-Lian Sun
Publikationsdatum: 09.01.2020
Verlag: Springer US
Erschienen in: Journal of Economics and Finance / Ausgabe 3/2020
Print ISSN: 1055-0925
Elektronische ISSN: 1938-9744
DOI: https://doi.org/10.1007/s12197-019-09500-9

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