EconPapers    
Economics at your fingertips  
 

EARNINGS, MERGERS AND ACQUISITIONS UNDER PENSION DISCLOSURE STANDARDS

Jun Cai, Yiyi Qin and Anxing Wang
Additional contact information
Jun Cai: Department of Economics and Finance, City University of Hong Kong, Hong Kong, China
Yiyi Qin: Department of Economics and Finance, City University of Hong Kong, Hong Kong, China
Anxing Wang: School of Finance, Shanghai University of Finance and Economics, Shanghai, China

Advances in Decision Sciences, 2018, vol. 22, issue 1, 137-179

Abstract: We examine whether managers alter earnings management behavior, in the case of mergers and acquisitions, following the introduction of new pension disclosure standards under SFAS 132R, effective December 15, 2003. We find managers do set lower rate of return (ERR) assumptions on pension assets under the new pension accounting standards. However, managers also become more sensitive to opportunities to boost reported earnings by inflating ERR. Managers more actively exploit such opportunities when pension assets are large relative to earnings measures, i.e., when potential gains from earnings management are large.

Keywords: defined benefit pension plans; earnings management; mergers and acquisitions; pension assumptions; disclosure standards (search for similar items in EconPapers)
JEL-codes: G34 J32 M41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://journal.asia.edu.tw/ADS/wp-content/uploads/ ... re-Standards_ADS.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aag:wpaper:v:22:y:2018:i:1:p:137-179

Access Statistics for this article

More articles in Advances in Decision Sciences from Asia University, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Pan ().

 
Page updated 2019-10-21
Handle: RePEc:aag:wpaper:v:22:y:2018:i:1:p:137-179