What is it about?
This study investigates the effect of accrual-based and real earnings management practices on the likelihood of M&A deal withdrawal, highlighting the role of financial reporting quality in the acquirer’s decision-making.
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Why is it important?
In contrast to previous research that primarily focused on accrual-based models, this study innovates using both accrual and real earnings management, offering a comprehensive perspective on target firms’ manipulation tactics. This aspect, combined with the selected sample, establishes an innovative approach to the topic of M&As, contributing to enhancing the current literature and providing new research avenues.
Perspectives
This study emphasizes the need for acquirers to implement thorough due diligence procedures, considering both accrual and real earnings management, especially under conditions of high information asymmetry. It highlights the central role of financial reporting quality in the success of critical corporate events, such as M&As.
Dr Spyros Papathanasiou
National and Kapodistrian University of Athens
Read the Original
This page is a summary of: The systemic footprint: revisiting risk mitigation in long/short and 60/40 portfolios through network connectedness, Review of Derivatives Research, January 2026, Springer Science + Business Media,
DOI: 10.1007/s11147-025-09226-3.
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