scholarly journals The role of accounting conservatism in M&A target selection

2021 ◽  
pp. 100204
Author(s):  
Qingquan Tang ◽  
Jingjing Guo ◽  
Zhihong Huang
Keyword(s):  
Target Selection ◽  
Accounting Conservatism

Accounting Conservatism and Firm Growth Financed by External Debt

2016 ◽  
Vol 32 (2) ◽  
pp. 182-208 ◽  
Author(s):  
Tony Kang ◽  
Gerald J. Lobo ◽  
Michael C. Wolfe
Keyword(s):  
Firm Growth ◽  
Positive Relationship ◽  
External Debt ◽  
Debt Maturity ◽  
Accounting Conservatism ◽  
Debt Contracting ◽  
Conservative Accounting ◽  
Agency Risk

Previous research shows that accounting conservatism facilitates debt contracting. Extending this line of literature, we examine whether the role of accounting conservatism in accessing external debt to attain firm growth varies with its maturity. We find evidence of a positive relationship between conservatism and debt maturity. We also observe a positive relationship between conservative accounting and future growth funded by all classes of debt, but this relation is due to long-term rather than short-term debt, which is less prone to agency risk. Furthermore, the associations between conservatism and debt maturity and conservatism and growth financed by long-term debt are mostly observed for firms with fewer anti-takeover provisions in place. These findings suggest that the demand for accounting conservatism is not uniform across different debt maturity horizons.

scholarly journals The Role of the Frontal Eye Fields in Oculomotor Competition: Image-Guided TMS Enhances Contralateral Target Selection

2012 ◽  
Vol 23 (4) ◽  
pp. 824-832 ◽  
Author(s):  
S. E. Bosch ◽  
S. F. W. Neggers ◽  
S. Van der Stigchel
Keyword(s):  
Target Selection ◽  
Frontal Eye Fields ◽  
Image Guided

scholarly journals Telaah Literatur Tentang Faktor-Faktor yang Mempengaruhi Konservatisme Akuntansi

2012 ◽  
Vol 8 (2) ◽  
Author(s):  
Lia Alfiah Dinanar Hati
Keyword(s):  
Conflict Of Interest ◽  
Financial Distress ◽  
Accounting Conservatism ◽  
Litigation Risk ◽  
Political Costs

This paper examine several factor that impact to accounting conservatism practice. Conservatism is commonly defined as the differential verifiability required for recognition of profits versus losses. Regardless of the different opinion about role of accounting conservatism, in fact, this principle is still in uses until now and be one of the dominant principle in accounting. Through this article the author do review of several previous studies about accounting conservatism at Indonesia and other country. From several review we conclude that accounting conservatism is affected by factors of contracting, litigation risk, political costs, regulations, financial distress and conflict of interest between shareholders and bondholders.

scholarly journals The Role of Debt Covenant in Moderating the Effects of Poilitical Cost on Accounting Conservatism

2020 ◽  
Vol 5 (9) ◽  
pp. 505-510
Author(s):  
Nur Fatwa Basar ◽  
Andi Hendro
Keyword(s):  
Financial Services ◽  
Stock Exchange ◽  
Secondary Data ◽  
Accounting Conservatism ◽  
Debt Covenants ◽  
Financial Reports ◽  
Political Costs ◽  
Political Cost ◽  
Debt Covenant

The purpose of this study was to analyze the direct effect of political cost and debt covenant on accounting conservatism. Besides, this study also analyzes the role of debt covenants as a moderator between the effect of political cost on accounting conservatism. The companies that are the samples are companies indexed on the IDX30 other than financial services companies and companies with non-rupiah financial reports. the data used is secondary data from the financial statements of 20 companies listed on the Indonesian stock exchange. data analysis using multiple linear regression and analysis of variance. The results showed that political cost directly affects accounting conservatism positively and significantly. whereas debt covenant does not have a direct significant effect on accounting conservatism. Besides, this study shows the role of debt covenants in strengthening the effect of political costs on accounting conservatism.

scholarly journals Accounting Conservatism And Firms’ Investment Decisions

2016 ◽  
Vol 32 (4) ◽  
pp. 1223-1236 ◽  
Author(s):  
Jungeun Cho ◽  
Won-Wook Choi
Keyword(s):  
Investment Decisions ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Disclosure ◽  
Managerial Ownership ◽  
Conservative Accounting ◽  
Controlling Mechanism ◽  
The Impact ◽  
Timely Loss Recognition

This study examines the effectiveness of accounting conservatism in monitoring and controlling managers’ decision-making regarding opportunistic investment. We find that accounting conservatism is negatively associated with over-investment. This suggests that conservative accounting policies serve as an efficient monitoring and controlling mechanism for opportunistic investment decisions. We also find a stronger negative association between accounting conservatism and over-investment in firms with low managerial ownership and low ownership by foreign investors. The results of our analysis imply that the impact of timely loss recognition on over-investment is more significant in firms with high agency problems and weaker monitoring ability, and that this factor complements other governance mechanisms, thereby helping to control managers’ myopic investment decisions. We provide evidence for a role of financial disclosure in mitigating managers’ opportunistic over-investment decisions. Though managers’ over-investment decisions are motivated by private gain, which reduces firm performance and compromises investors’ welfare, limited research exists on the role of financial information in alleviating such behavior. We suggest that timely loss recognition in financial statements can serve as an effective monitoring mechanism to aid in control of managers’ myopic over-investment.

scholarly journals The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda

2019 ◽  
Vol 46 (6) ◽  
pp. 843-878 ◽  
Author(s):  
Xena Welch ◽  
Stevo Pavićević ◽  
Thomas Keil ◽  
Tomi Laamanen
Keyword(s):  
Mergers And Acquisitions ◽  
Research Agenda ◽  
Temporal Dynamics ◽  
Target Selection ◽  
Comprehensive Analysis ◽  
Research Interest ◽  
Theoretical Base ◽  
Topic Area ◽  
High Level

Despite the long-standing research interest in the pre-deal phase of mergers and acquisitions, many important questions remain unanswered. We review and synthesize the extensive but rather fragmented research on this topic area in the fields of management, finance, accounting, and economics. We organize our review according to six themes, that is, deal initiation, target selection, bidding and negotiation, valuation and financing, announcement, and closure, which represent the main categories of activities performed during the pre-deal phase. Our review shows that most of the existing research relies on a rather high-level, simplified, and static conception of the pre-deal phase. On the basis of our review, we put forward a research agenda that calls for a more granular examination of individual activities and decisions, a more comprehensive analysis of the interplay among the different actors involved in the pre-deal phase, a better understanding of the role of the temporal dynamics, and the extension of the theoretical base from variance-based to process-based theorizing.

The role of accounting conservatism in executive compensation contracts

2018 ◽  
Vol 45 (9-10) ◽  
pp. 1139-1163 ◽  
Author(s):  
Takuya Iwasaki ◽  
Shota Otomasa ◽  
Atsushi Shiiba ◽  
Akinobu Shuto
Keyword(s):  
Executive Compensation ◽  
Accounting Conservatism ◽  
Compensation Contracts
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