Accounting information and corporate governance: Market and analyst reactions to earnings of firms engaged in proxy contests

Daniel W. Collins; Linda DeAngelo

doi:10.1016/0165-4101(90)90032-Y

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Accounting information and corporate governance: Market and analyst reactions to earnings of firms engaged in proxy contests

Journal article

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Accounting information and corporate governance: Market and analyst reactions to earnings of firms engaged in proxy contests

Daniel W. Collins and Linda DeAngelo

Journal of accounting & economics, Vol.13(3), pp.213-247

10/01/1990

DOI: 10.1016/0165-4101(90)90032-Y

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Abstract

This paper studies market and analyst reactions to earnings (i) during a proxy contest for board seats and (ii) after a proxy-contest-induced management change. Despite indications of earnings management during the proxy contest, market and analyst reactions are more pronounced than in prior periods, and earnings surprises explain more of the cross-sectional variation in these reactions. Market and analyst reactions to earnings released after a successful proxy contest are less pronounced than in prior periods and earnings surprises explain less of the variation in these reactions, perhaps due to new managements' tendency to take an earnings ‘bath’.

Details

Title: Subtitle: Accounting information and corporate governance: Market and analyst reactions to earnings of firms engaged in proxy contests
Creators: Daniel W. Collins - University of Iowa
Linda DeAngelo - University of Michigan
Resource Type: Journal article
Publication Details: Journal of accounting & economics, Vol.13(3), pp.213-247
DOI: 10.1016/0165-4101(90)90032-Y
ISSN: 0165-4101
eISSN: 1879-1980
Publisher: Elsevier B.V; AMSTERDAM
Number of pages: 35
Language: English
Date published: 10/01/1990
Academic Unit: Accounting
Record Identifier: 9984962548102771

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