Stratégie comptable des dirigeants et parité d'échange: le cas des fusions françaises

Constant Djama and Jennifer Boutant

ACCRA, 2006, vol. 12, issue 2, 191-217

Abstract: This paper investigates, in French mergers, the effect of managers? accounting discretion on stock for stock exchange ratio. Our results indicate that acquiring firms manage earnings upward in the year prior to the deal in order to reduce the number of shares to issue. Acquiring firms? unexpected accruals average 6.7 % of total assets. Moreover, results suggest that earnings management is related to the level of participation in the acquiring firm held by the managers and/or their family, by the dilutive potential shares, by the use of accounting evaluation methods that best predict the final exchange ratio, by the auditors? reputation and by the firm performance.

Keywords: french mergers; accruals; earnings management; exchange ratio; wealth transfer (search for similar items in EconPapers)
Date: 2006
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