A Re-examination of Australian evidence of directors' recommendations on takeover bids and management of earnings

Lu Liu, Philip Sinnadurai

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review

Abstract

This study investigates whether Australian targets mange their earrings during takeover bids. A sample of 65 firm-years that were subject to takeover officers during the period 1999-2003 is selected. Each treatment firm-year is matched by industry and size with a control firm-year not subject to a takeover bid. Three Discretionary Accruals models are used: the DeAngelo (1986) model, the Jones (1991) model and the modified Jones (1995) model. The results are reasonably consistent among the three models. They indicate that “accept”, but not “reject” firms manage earnings to support directors’ recommendations.
Original languageEnglish
Title of host publicationProgram and proceedings
Subtitle of host publicationNineteenth Asian-Pacific Conference on International Accounting Issues
Place of PublicationKuala Lumpur, Malaysia
PublisherThe University of Malaya and California State University
Pages1-23
Number of pages23
Publication statusPublished - 2007
EventAsian-Pacific Conference on International Accounting Issues (19th : 2007) - Kuala Lumpur, Malaysia
Duration: 11 Nov 200714 Nov 2007

Conference

ConferenceAsian-Pacific Conference on International Accounting Issues (19th : 2007)
CityKuala Lumpur, Malaysia
Period11/11/0714/11/07

Keywords

  • Earnings management, takeovers, Australia
  • earnings management
  • takeovers

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