Cross-country determinants of mergers and acquisitions

Rossi, Stefano; Volpin, Paolo F.

doi:10.1016/j.jfineco.2003.10.001

Cited by 978 publications

(696 citation statements)

References 27 publications

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“…Some non-bank studies also report evidence in support of the hubris and agency conflict hypotheses(Berkovitch and Narayanan, 1998;Rossi and Volpin 2004). Cross-country merger studies suggest that differences in accounting standard and shareholder protection are significant drivers of shareholder activities(Rossi and Volpin 2004;Buch and De Long 2004;Pozzolo and Focarelli 2007).…”

mentioning

confidence: 98%

“…Cross-country merger studies suggest that differences in accounting standard and shareholder protection are significant drivers of shareholder activities(Rossi and Volpin 2004;Buch and De Long 2004;Pozzolo and Focarelli 2007). 5McKillop et al (2006) examine mergers of Irish credit unions whileGoth et al (2006) provide a commentary on the motives for mergers in UK credit unions.…”

mentioning

confidence: 99%

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Which Credit Unions are Acquired?

2009

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Which Credit Unions are Acquired?

2009

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“…The empirical results of Rossi and Volpin (2004) indicate that the volume of M&A activity is significantly higher in countries with better accounting standards, hence providing support to their argument. also find that disclosure requirements are statistically significant and positively related to bank acquisitions in the EU in most of their specifications.…”

Section: Disclosure Requirementsmentioning

confidence: 67%

“…By enhancing available information, and by influencing the risk behaviour of banks. Related to the first, is the argument of Rossi and Volpin (2004) who mention that accounting and information disclosure may affect M&As because good disclosure is a necessary condition for identifying potential targets. They also point out that accounting standards reveal corporate governance as they decrease the scope for expropriation by making corporate accounts more transparent.…”

Section: Disclosure Requirementsmentioning

confidence: 99%

Regulations, Supervision Approaches and Acquisition Likelihood in the Asian Banking Industry

Pasiouras

Gaganis

Zopounidis

2008

Asia-Pac Finan Markets

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“…Accounting standards also reflect some level of CG, for the reason that they reduce the scope for expropriation by making corporate accounts more transparent. Rossi and Volpin (2004) reveal that a more active market for M&As is the effect of a corporate governance regime with stronger investor protection. Countries with better shareholder protection are likely to have relatively more hostile takeover deals, the explanation being that good protection for minority shareholders makes control more contestable by reducing the private benefits of control.…”

Section: Motivations For Mergers and Acquisitionsmentioning

confidence: 99%

The Impact of the UK Corporate Governance Code 2010 on Earnings Management around Mergers and Acquisitions

Banseh¹,

Khansalar²

2016

IJEF

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Several studies revealed earnings management (EM) around mergers and acquisitions (M&As) by both acquirers and target firms. Rosa et al. (2003) suggest that a systematic EM is associated with the use of stock as payment in takeovers. This and other corporate malpractices have prompted authorities to tighten regulations by passing the United Kingdom (UK) Corporate Governance (CG) Code to guide companies in the UK in their corporate management and financial reporting.This study is to investigate the impact of the UK CG Code on accruals EM around M&As in the UK. The study applied the Modified Jones (1991) model as modified by Dechow et al. (1995) and the Pearson Product Moment Correlation in analysing a sample data from 66 companies listed on the LSE that have undertaken M&As within the period of January 2007 to December 2014. The results produced by the modified Jones model indicate some level of income increasing discretionary accruals in the pre-CG period but showed an opposite situation in the post-CG period. A test for significance indicates the means of pre-CG discretionary accruals and post-CG discretionary accruals were different and significant. The hypothesis that "the level of earnings management around mergers and acquisitions in the UK has significantly reduced after the enactment of the UK Corporate Governance code 2010" was therefore accepted.Results from the Pearson Correlation Coefficient were inconclusive on EM but indicate some changes in the level of activities in the earnings between the two periods. This may also points to some effect of CG Code on the reported earnings of these companies. The results from this study is consistent with existing studies that evince the effectiveness of CG in controlling EM as Hsu and Koh (2005);Osma (2008) suggest that best corporate governance practices minimise EM and reduce fraud drastically.

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Cross-country determinants of mergers and acquisitions

Cited by 978 publications

References 27 publications

Which Credit Unions are Acquired?

Which Credit Unions are Acquired?

Regulations, Supervision Approaches and Acquisition Likelihood in the Asian Banking Industry

The Impact of the UK Corporate Governance Code 2010 on Earnings Management around Mergers and Acquisitions

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