Does Target Firm’s Earnings Management Affect Shareholder’s Gains? Evidence from China
This study tests the hypothesis that the target firms are involved in earnings management activities in quarters leading to a takeover announcement. Using a sample of 3,455 Chinese listed firms that are targets of successful acquisitions over the period 2007–2020, and for a matched sample of non-targets, we find that target firms manipulate earnings in quarters leading to the announcement date. Further, we find evidence of a negative relationship between earnings management and short-term gains to shareholders. Our result remains robust after controlling for various deal characteristics. The study also suggests that pre-merger earnings management in target firms is not fully anticipated by the market before the takeover announcement. We find no evidence of earnings management immediately after the announcement quarter.
- Location
-
Deutsche Nationalbibliothek Frankfurt am Main
- Extent
-
Online-Ressource
- Language
-
Englisch
- Bibliographic citation
-
Does Target Firm’s Earnings Management Affect Shareholder’s Gains? Evidence from China ; volume:55 ; number:2 ; year:2022 ; pages:203-226
Credit and capital markets ; 55, Heft 2 (2022), 203-226
- Creator
- DOI
-
10.3790/ccm.55.2.203
- URN
-
urn:nbn:de:101:1-2022101115435132505699
- Rights
-
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
-
15.08.2025, 7:25 AM CEST
Data provider
This object is provided by:
Deutsche Nationalbibliothek. If you have any questions about the object, please contact the data provider.
Deutsche Nationalbibliothek. If you have any questions about the object, please contact the data provider.
Associated
- Mughal, Azhar
- Haque, Abdul
- Zahid, Zohaib
- Ali, Furman
- Li, Zheng
Other Objects (12)
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
Nash equilibria in all-pay auctions with discrete strategy space
One-pot three-component solvent-free synthesis of 1-((1,3-thiazol-2-ylamino) methyl)-2-naphthols
Eco-friendly conjugate hydrocyanation of 2-aroyl α,β-unsaturated ketones with potassium hexacyanoferrate (II)
Early Gray Matter Structural Covariance Predicts Longitudinal Gain in Arithmetic Ability in Children
The impacts of industry wage premiums and education levels on gender inequality: Evidence from five developed countries
Conditional Cube Attack on Round-Reduced ASCON
Experiment‐based statistical distribution of buckling loads of cylindrical shells
The poverty alleviation effect of transfer payments: evidence from China
On the privacy risks of machine learning models
EEG complexity measures for detecting mind wandering during video-based learning
Statistical size effect in steel structure and corresponding influence on structural reliability
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
Nash equilibria in all-pay auctions with discrete strategy space
One-pot three-component solvent-free synthesis of 1-((1,3-thiazol-2-ylamino) methyl)-2-naphthols
Eco-friendly conjugate hydrocyanation of 2-aroyl α,β-unsaturated ketones with potassium hexacyanoferrate (II)
Early Gray Matter Structural Covariance Predicts Longitudinal Gain in Arithmetic Ability in Children
The impacts of industry wage premiums and education levels on gender inequality: Evidence from five developed countries
Conditional Cube Attack on Round-Reduced ASCON
Experiment‐based statistical distribution of buckling loads of cylindrical shells
The poverty alleviation effect of transfer payments: evidence from China
On the privacy risks of machine learning models
EEG complexity measures for detecting mind wandering during video-based learning
Statistical size effect in steel structure and corresponding influence on structural reliability
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
Nash equilibria in all-pay auctions with discrete strategy space
One-pot three-component solvent-free synthesis of 1-((1,3-thiazol-2-ylamino) methyl)-2-naphthols
Eco-friendly conjugate hydrocyanation of 2-aroyl α,β-unsaturated ketones with potassium hexacyanoferrate (II)
Early Gray Matter Structural Covariance Predicts Longitudinal Gain in Arithmetic Ability in Children
The impacts of industry wage premiums and education levels on gender inequality: Evidence from five developed countries
Conditional Cube Attack on Round-Reduced ASCON
Experiment‐based statistical distribution of buckling loads of cylindrical shells
The poverty alleviation effect of transfer payments: evidence from China
On the privacy risks of machine learning models
EEG complexity measures for detecting mind wandering during video-based learning