Earning Management of Acquirees: An Empirical Evidence from the Stock Exchange of Thailand

Abstract

        This research aimed at identifying earnings management of acquirees. The samples used for this
study were 91 listed companies in the stock exchange of Thailand acquired during 2550 - 2558 B.E.
The researcher tested the earnings management via discretionary at the accruals by employing the
Modified Jones (1995) Model. The data for the study were collected to assess the discretionary accruals
by Time-series Method. Then, descriptive and inferential statistics were employed for the data analyses
with the statistical significance at the 0.05 level.
        The findings revealed that the acquirees had the earnings management via the discretionary
accruals during the years of mergers. It was also found that the earnings management was in a downward
direction. This might be due to the need of the executives to make the operating performances after the
year of mergers higher, resulting in the higher profits at the following years of the acquirers. Then, it would
maketheacquirers realizethevaluesof theinvestment decisions. As a consequence, theempiricalevidence
of this study corresponded to the past research conducted by Zucca & Campbell (1992)