Targets’ earnings management and ownership decisions in M&A: Can less be more ?

Héctor Fabio Perafán-Peña, Belén Gill-de-Albornoz Noguer and Begoña Giner

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: In a sample of 1,097 European merger and acquisitions (M&A) deals, we find that the targets exhibiting higher levels of accruals earnings management (AEM) relate to lower ownership stakes offered by acquirers. Real earnings management (REM) measures do not relate to ownership decisions. This research contributes to broadening our knowledge about accounting information's role in the intricacies of M&A negotiations.

Keywords: Mergers and acquisitions; Earnings management; Ownership decisions (search for similar items in EconPapers)
JEL-codes: G34 M41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001636

DOI: 10.1016/j.frl.2024.105133

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