Stock-for-stock mergers : earnings management and the pooling-purchase choice. Do investors care?

• Main Authors: Ang, Teresa Siow Yen, Cheam, Tze Hui, Lee, Sin Wei
• Other Authors: Lim, Chee Yeow
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/8413
• Institution: Nanyang Technological University

We investigate whether there is a relationship between the level of aggression of an acquiring firm in managing earnings prior to the completion of a stock-for-stock merger and its choice of accounting method for the merger. Market reaction to the combination of earnings management and accounting me...