Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers

UTSePress Research/Manakin Repository

Search UTSePress Research


Advanced Search

Browse

My Account

Show simple item record

dc.contributor.author Eddey, Peter en_US
dc.contributor.author Taylor, Stephen en_US
dc.contributor.editor en_US
dc.date.accessioned 2010-05-28T09:54:24Z
dc.date.available 2010-05-28T09:54:24Z
dc.date.issued 1999 en_US
dc.identifier 2007003396 en_US
dc.identifier.citation Eddey Peter and Taylor Stephen 1999, 'Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers', Wiley-Blackwell Publishing Asia, vol. 35, no. 1, pp. 29-45. en_US
dc.identifier.issn 0001-3072 en_US
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/10150
dc.description.abstract This article investigates whether Australian companies manage their earnings during takeover bids in a manner consistent with the earnings-management hypothesis. This hypothesis predicts that directors who reject a bid use accrual accounting to increase current earnings, supporting their claim that the bid, relative to earnings, is inadequate. Likewise, directors who accept a bid are predicted to use accrual accounting to decrease current earnings. Overall, the results are not consistent with the earnings-management hypothesis. However, some components of unexpected accruals (our proxy for managed earnings) change in the direction predicted by the earnings-management hypothesis, although these changes are not statistically significant. Using industry adjusted performance measures the conclusion is that unexpected accruals are primarily a manifestation of poor financial performance of target firms in the period leading up to the takeover bid. en_US
dc.language en_US
dc.publisher Wiley-Blackwell Publishing Asia en_US
dc.title Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers en_US
dc.parent Abacus: a journal of accounting, finance and business studies en_US
dc.journal.volume 35 en_US
dc.journal.number 1 en_US
dc.publocation Australia en_US
dc.identifier.startpage 29 en_US
dc.identifier.endpage 45 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150103 en_US
dc.personcode 0000045618 en_US
dc.personcode 104690 en_US
dc.percentage 50 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords Accruals; Earnings management; Takeovers. en_US
dc.staffid 104690 en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record