Earnings Management of Acquiring Firms in Stock-for-Stock Takeovers in the Telecommunications Industry

Hyeongjik Lee, Seongcheol Kim, Changi Nam and Seung Hun Han

Journal of Media Economics, 2008, vol. 21, issue 4, 217-233

Abstract: This article investigates whether acquiring telecommunications firms managed their earnings by means of discretionary accruals prior to the announcement of stock-for-stock takeovers in the U.S. telecommunications industry during the period of 1990 to 2006. The results show that acquiring telecommunications firms manage earnings upward prior to stock-for-stock takeovers. In addition, this article finds that there is a negative short-term wealth effect over the days surrounding stock-for-stock takeover announcements, and there is an inverse relation between earnings management and short-term wealth.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/08997760802541117 (text/html)
Access to full text is restricted to subscribers.

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:taf:jmedec:v:21:y:2008:i:4:p:217-233

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/HMEC20

DOI: 10.1080/08997760802541117

Access Statistics for this article

Journal of Media Economics is currently edited by Nodir Adilov

More articles in Journal of Media Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().