题目: Information Asymmetry and Earnings Management: Evidence from Cross-Border Mergers
演讲者：Bok Baik, Associate Professor in Accounting, College of Business and Administration, Seoul National University
时间: 2010年3月26日（星期五）3:00—4:30PM
地点: 嘉庚二501
参加者: 对会计研究有兴趣的广大师生
主持人： 沈哲老师
论文简介：
We examine patterns of earnings management by U.S. bidders in cross-border mergers. We hypothesize that high information asymmetry that foreign targets face in cross-border mergers makes it difficult for them to detect U.S. bidders’ earnings management, which increases U.S. bidders’ incentives to inflate earnings prior to cross-border mergers. Consistent with this hypothesis, we find that the extent of bidder discretionary accruals is significantly higher in cross-border stock swap mergers than in domestic stock swap mergers. We also find that among U.S. bidders, those whose target home countries do not share a common language with and have a similar culture to the U.S. and those whose target home countries’ primary religion is not Christian are more likely to report income-increasing abnormal accruals. Bidder abnormal accruals are also higher when the targets are from countries with less freedom of press, less political stability, less government effectiveness, a lower level of rule of law/regulatory quality, and more government corruption. Further supporting our hypothesis, we find that the relative frequency of bidders’ earnings restatements after cross-border mergers is higher than that after domestic mergers, and the likelihood of earnings restatements in cross-border mergers is positively associated with bidder abnormal accrual and the extent of targets’ information asymmetry. Finally, we find some evidence that for stock swap deals in which U.S. bidders acquire targets from countries with greater information asymmetry, U.S. bidders’ merger announcement returns and post-merger long-term stock returns are negatively related to their abnormal accruals. These results suggest that investors do not completely undo bidder accrual management at the time of the merger announcement, and the price correction extends over the post-merger announcement period.
论文作者简介：
Prof. Baik got Ph.D. in Business Administration from University of California at Berkeley, Master of Science in Economics from University of Michigan at Ann Arbor and Master and Bachelor of Business Administration from Seoul National University.
下载： 论文.doc