Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China

doi:10.1016/j.jacceco.2017.11.011

CORC > 上海财经大学 > 上海财经大学

	Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China
	Lennox, Clive 1; Wang, Zi-Tian 2; Wu, Xi 3
刊名	JOURNAL OF ACCOUNTING & ECONOMICS
	2018-02
卷号	65 期号:1 页码:21-40
关键词	Stock-financed acquisitions Earnings management Audit Adjustments
ISSN号	0165-4101
DOI	10.1016/j.jacceco.2017.11.011
英文摘要	Acquirers are motivated to overstate earnings prior to stock-financed acquisitions. We hypothesize that audits help to detect and correct such overstatements. We test this using a difference-in-differences design, which compares audit adjustments to earnings for stock financed and cash-financed acquirers before versus after the acquisitions. Consistent with our hypothesis, we find larger downward adjustments in the audits immediately before stock-financed acquisitions. Further analysis of regulatory sanctions suggests the downward adjustments are in fact warranted, rather than auditors being overly conservative. Moreover, modifications in audit reports suggest that downward adjustments do not correct all of the reporting irregularities in audited financial statements. (C) 2017 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000426229000002
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/699]
专题	上海财经大学
通讯作者	Lennox, Clive
作者单位	1.Univ Southern Calif, Leventhal Sch Accounting, Los Angeles, CA 90007 USA; 2.Shanghai Univ Finance & Econ, Sch Accountancy, Shanghai, Peoples R China; 3.Cent Univ Finance & Econ, Sch Accountancy, Beijing, Peoples R China
推荐引用方式 GB/T 7714	Lennox, Clive,Wang, Zi-Tian,Wu, Xi. Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China[J]. JOURNAL OF ACCOUNTING & ECONOMICS,2018,65(1):21-40.
APA	Lennox, Clive,Wang, Zi-Tian,&Wu, Xi.(2018).Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China.JOURNAL OF ACCOUNTING & ECONOMICS,65(1),21-40.
MLA	Lennox, Clive,et al."Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China".JOURNAL OF ACCOUNTING & ECONOMICS 65.1(2018):21-40.