Professor Walid Ben Amar received an Emerald Literati award for research published in the International Journal of Managerial Finance. The paper investigated the link between ownership structure, earnings management preceding a merger and acquisition and the acquiring firm’s subsequent long-term market performance. It was named as one of three “highly commended” papers published in 2012. The study was co-authored with Claude Francoeur and Philémon Rakoto, Department of Accounting Studies, HEC Montréal.
The team took a closer look at dominant shareholders’ motivations to manage earnings in stock-financed M&A. From the abstract: “Large shareholders have strong incentives to manage earnings upward prior to stock-financed transactions to limit the dilution of their controlling position. Regulators can play an important role in preventing dominant shareholders from engaging in opportunistic earnings management in stock-financed M&A.”