Accounting for M&A: Uses and Abuses of Accounting in Monitoring and Promoting Merger, 1st Edition (Hardback) book cover

Accounting for M&A

Uses and Abuses of Accounting in Monitoring and Promoting Merger, 1st Edition

Edited by Amir Amel-Zadeh, Geoff Meeks

Routledge

392 pages | 12 B/W Illus.

Purchasing Options:$ = USD
Hardback: 9780367344832
pub: 2020-05-29
SAVE ~$31.00
Available for pre-order. Item will ship after 29th May 2020
$155.00
$124.00
x


FREE Standard Shipping!

Description

Spending on M&A has, in aggregate, grown so fast that it has even overtaken capital expenditure on increasing and maintaining physical assets. Yet McKinsey, the leading management consultancy, reports that "Anyone who has researched merger success rates knows that roughly 70% fail". The idea that businesses might be using huge and increasing sums of shareholders’ money for an activity which more often than not leads to failure calls into question the information on which M&A decisions are based.

This book presents statistical studies, case material, and standard-setters' opinions on company accounting before, during and after M&A. It documents the manipulation of annual accounts by acquirers ahead of share for share bids, biased forecasts of post-merger earnings by bidders, and devices to flatter earnings when recording the deal. It explores the challenges for standard-setters in regulating information flows during and after M&A; and for account-users wishing to learn from financial statements how a deal has affected performance.

Drawing on a wide range of international examples, this readable book is targeted not just at accounting specialists, but at anyone who is comfortable reading the serious financial press, is intrigued by what is going on in the massive M&A market, and concerned to achieve better informed M&A. As such it might be of particular interest to business executives, lawyers, bankers and investors involved in M&A as well as graduate students interested in researching or learning about the role of accounting in M&A.

Table of Contents

Abstracts

List of Tables

List of Figures

Preface

Acknowledgements

Acronyms and other abbreviations

Biographical notes

  1. Introduction
  2. Amir Amel-Zadeh and Geoff Meeks

    Part 1: Accounting procedures

  3. An outline of issues in accounting for M&A
  4. Amir Amel-Zadeh, Geoff Meeks, and Gay Meeks

  5. Seventy years of accounting standards for M&A
  6. Kevin Li and Geoff Meeks

  7. Developing new accounting standards for M&A: a standard-setters’ perspective
  8. David Tweedie and Geoffrey Whittington

  9. Stewardship and value-relevance in accounting for the depletion of purchased goodwill
  10. Amir Amel-Zadeh, Jonathan Faasse, Kevin Li, and Geoff Meeks

    Part 2: Managing perceptions of performance around M&A

  11. Stock prices and earnings management around M&A transaction
  12. Antonia Botsari

  13. Earnings forecasts accompanying a bid
  14. Amir Amel-Zadeh and Geoff Meeks

  15. Creating earnings through M&A
  16. Geoff Meeks and Gay Meeks

    Part 3: Using accounts to measure the impact of M&A on performance

  17. Measuring post-acquisition performance: Introduction
  18. Amir Amel-Zadeh and Geoff Meeks

  19. An early attempt to use accounting data to estimate the impact of M&A on financial performance
  20. Geoff Meeks

  21. The impact of M&A on performance: alternative measures of rates of profit
  22. Geoff Meeks and Gay Meeks

  23. Operating performance improvements after corporate takeovers: fact or fallacy?
  24. Amir Amel-Zadeh

  25. The financial performance of acquired companies in the Chinese stock market
  26. Guoxiang Song and Geoff Meeks

    Part 4: Concluding remarks

  27. Continuing challenges in accounting for M&A

Amir Amel-Zadeh and Geoff Meeks

Indexes

Authors

Firms

Subjects

About the Editors

Amir Amel-Zadeh is Associate Professor of Accounting at Saïd Business School, University of Oxford and Associate Member of the Oxford-Man Institute of Quantitative Finance. Prior to joining Saïd Business School, Amir held a faculty position at Judge Business School, University of Cambridge, and prior to that worked at Lehman Brothers in London. He received his PhD and MPhil in Finance from the University of Cambridge. He has been visiting scholar at Harvard Business School, at New York University Stern School of Business, and at Columbia Business School. His research examines the economic consequences of voluntary and mandatory corporate reporting, particularly during major corporate events such as mergers & acquisitions.

Geoff Meeks is Emeritus Professor and Honorary Director of Research at University of Cambridge, Judge Business School. He has held positions at the University of Edinburgh, Price Waterhouse, the Cambridge Economics Faculty and Cambridge Judge Business School, where he served inter alia as Acting Dean; he has been visiting scholar at Harvard Business School, INSEAD and London School of Economics. His publications are mainly in accounting, economics and finance, and concentrate particularly on M&A, insolvency, and accounting procedures.

About the Series

Routledge Studies in Accounting

This series explores the roles of Accounting and Accounting theory in the modern world. The series examines research in accounting thought, practice, auditing, principles and ethics as well as international standards and regulation setting. Examining private, public and non-profit sectors, Routledge Studies in Accounting, seeks to advance the scholarly debate by providing cutting edge and insightful research

Learn more…

Subject Categories

BISAC Subject Codes/Headings:
BUS001050
BUSINESS & ECONOMICS / Accounting / Standards (GAAP, IFRS, etc.)
BUS015000
BUSINESS & ECONOMICS / Mergers & Acquisitions
BUS017000
BUSINESS & ECONOMICS / Corporate Finance
BUS069000
BUSINESS & ECONOMICS / Economics / General
BUS104000
BUSINESS & ECONOMICS / Corporate Governance