The role of accounting conservatism in M&A target selection

作     者：Qingquan Tang Jingjing Guo Zhihong Huang 

作者机构：School of BusinessSun Yat–sen UniversityChina Center for AccountingFinance and InstitutionsSun Yat–sen UniversityChina 

出 版 物：《China Journal of Accounting Research》 (中国会计学刊（英文版）)

年 卷 期：2021年第14卷第4期

页      面：95-116页

学科分类：12[管理学] 120202[管理学-企业管理（含：财务管理、市场营销、人力资源管理）] 02[经济学] 0202[经济学-应用经济学] 1202[管理学-工商管理] 1201[管理学-管理科学与工程(可授管理学、工学学位)] 020204[经济学-金融学（含∶保险学）] 

基　　金：supported by funds from the National Natural Science Foundation of China(No.71790603 71672204) 

主　　题：Target selection Accounting conservatism Risk aversion Risk control 

摘      要：Mergers and acquisitions(M&As)are among the most important investment activities for companies,but they contain great *** investigate the role of accounting conservatism in M&A target selection and *** find that for risk-averse reasons,firms with high accounting conservatism are likely to acquire profitable targets and avoid loss-making *** such firms acquire loss-making targets,the conservatism’s risk-control role reduces M&A risk and increases M&A performance,but only when control of the target is transferred and the acquirer has high long-term debt and low management ***,accounting conservatism reduces risk by increasing the maturity match between cash flow and *** results suggest that accounting conservatism plays not only a risk-averse role but also a riskcontrol role,providing new evidence for the usefulness of accounting conservatism in M&A decisions.