HKUST Library Institutional Repository Banner

HKUST Institutional Repository >
Accounting >
ACCT Master Theses  >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1783.1/3665
Title: The effect of missing earnings forecasts on the choice of accounting for business combinations
Authors: Dai, Xiaoyan
Issue Date: 2000
Abstract: Anecdotal and experimental evidence suggests that managers may prefer pooling of interests to purchase accounting because of their concern for missing analysts?earnings forecasts. I attempt to find empirical evidence for this concern, and hypothesize that, ceteris paribus, the more quarters the acquiring firm's actual earnings fall below analysts?forecasts prior to a merger announcement, the more likely it chooses the pooling of interests method. I test this hypothesis using a sample of 84 transactions that choose pooling of interests accounting and 74 transactions that choose purchase accounting from 1994 through 1995. Inconsistent with my hypothesis, I find no association between managers?merger accounting choices and the number of quarters with negative analyst forecast error before merger announcements.
Description: Thesis (M.Phil.)--Hong Kong University of Science and Technology, 2000
41 leaves ; 30 cm
HKUST Call Number: Thesis ACCT 2000 Dai
URI: http://hdl.handle.net/1783.1/3665
Appears in Collections:ACCT Master Theses

Files in This Item:

File Description SizeFormat
th_redirect.html0KbHTMLView/Open

All items in this Repository are protected by copyright, with all rights reserved.