Does High Leverage Impact Earnings Management?: Evidence from Non-cash Mergers and Acquisitions
(2011)
Journal Article
Alsharairi, M., & Salama, A. (2011). Does High Leverage Impact Earnings Management?: Evidence from Non-cash Mergers and Acquisitions. Journal of financial and economic practice, 12(1), 17-33
Using a sample of US noncash acquirers, we find significant evidence of upward earnings management prior to announcing merger and acquisition deals. In this event study, we adopt an industryadjusted leverage proxy. No evidence of premerger earnings m... Read More about Does High Leverage Impact Earnings Management?: Evidence from Non-cash Mergers and Acquisitions.