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Earnings Management And Bargain Purchase Gains, Yan Yan
Earnings Management And Bargain Purchase Gains, Yan Yan
Dissertations, Theses, and Capstone Projects
This dissertation consists of two chapters that investigate earnings management through the recognition of bargain purchase gains in the banking industry and in other industries.
Chapter 1 In business acquisitions where the fair value of net assets acquired exceeds the consideration paid, acquiring firms recognize bargain purchase gains under ASC 805. The determination of the fair value of net assets at date of acquisition gives acquiring management considerable flexibility in judgments. In this chapter, I focus on bargain purchase acquisitions in the banking industry, and find that acquirer utilizes bargain purchase gains to avoid negative earnings and earnings decline. The …