/desautels/taxonomy/term/2958/all en /desautels/channels/news/value-eye-beholder-relative-valuation-roles-earnings-and-book-value-merger-pricing-270686 <p><strong>Author</strong>: <strong><a href="/desautels/node/64946">MaryJane Rabier</a> </strong></p> <p><strong>Publication</strong>: <em>The Accounting Review</em>, Vol. 93, No. 1, 2018, pp. 335-362</p> <p><strong>Abstract</strong>:</p> <p>Gupta and Gerchek (2002) argue that different acquirers can arrive at different equity valuations for the same target depending on their strategic intent. A reason for acquirers' equity valuations to vary, holding target fundamentals constant, may be that individual acquirers place different weights on underlying fundamentals. I examine this possibility using Burgstahler and Dichev (1997)'s theoretical framework. They argue that the relative importance of earnings and book value depends on expected adaptation, which is the likelihood that the existing earnings generating process will be altered. Using restructuring costs to proxy for expected adaptation at the individual acquirer level, I find that the association between the target's earnings (book value) and acquirers' bid prices is decreasing (increasing) in expected adaptation, consistent with theoretical predictions. These findings are less pronounced during merger waves and intense bid competition for the target.</p> <p><strong>Read full article</strong>: <a href="http://aaajournals.org/doi/10.2308/accr-51785?code=aaan-site"><em>The Accounting Review</em></a></p> <p> Thu, 28 Sep 2017 14:33:03 +0000 thao.nguyen3@mail.mcgill.ca 67907 at /desautels /desautels/channels/news/influential-chief-marketing-officers-and-management-revenue-forecasts-284605 <p><strong>Authors:</strong> David S. Koo and <a href="/desautels/dongyoung-lee"><strong>Dongyoung Lee</strong></a></p> <p><strong>Publication: </strong><em>The Accounting Review</em>, Forthcoming</p> <p><strong>Abstract:</strong></p> <p>We examine the role of the chief marketing officer (CMO) in corporate voluntary disclosure of future revenues. Using a sample of S&P 1500 firms for the period from 2003 to 2011, we find that the presence of an influential CMO in top management is positively associated with the likelihood of a firm's issuing a management revenue forecast. We also find that firms with an influential CMO provide more accurate revenue forecasts than other firms. These findings extend to long-window change analyses and are robust to the use of a propensity-score matched-pair approach. Overall, the results are consistent with the notion that CMO influence in top management appears to play an important role in voluntary revenue disclosures.</p> <p><strong>Read abstract: </strong><a href="http://aaajournals.org/doi/10.2308/accr-51946?code=aaan-site" target="_blank"><em>The Accounting Review</em></a></p> <p> Thu, 08 Feb 2018 18:22:14 +0000 julie.lapalme@mcgill.ca 68354 at /desautels /desautels/research/desautels-top-tier-publications/accounting-review <p><big><a href="http://aaapubs.org/loi/accr?code=aaan-site" target="_blank"><em>The</em> <em>Accounting Review</em></a> is the premier journal for publishing articles reporting the results of accounting research and explaining and illustrating related research methodology. </big></p> <p><strong>2021</strong>  |  <a href="#2018">2018</a></p> Mon, 24 Jul 2017 16:55:42 +0000 julie.lapalme@mcgill.ca 67690 at /desautels