CEO Age, Earnings Management and Mergers & Acquisitions Evidence from China

Xinmiao FANG, Jingxuan ZUO, Yilin GAO, Yan YU

Journal of Systems Science and Information ›› 0

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中国科学院数学与系统科学研究院期刊网
JSSI
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Journal of Systems Science and Information ›› 0 DOI: 10.21078/JSSI-E2022023

CEO Age, Earnings Management and Mergers & Acquisitions Evidence from China

  • Xinmiao FANG1, Jingxuan ZUO2, Yilin GAO2, Yan YU3
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Abstract

This paper explores the relationship between CEO age in target firms, earnings management, mergers and acquisitions decision-making, and performance by using a sample of Chinese firms from 2008 to 2017. We found that CEO age is negatively correlated with M&A decision-making and target firms engage in a higher degree accrual-based earnings management (AEM) than non-target firms. In addition, target firms with young CEOs exhibit a greater extent of AEM in the pre-M&A period. We also found that the relationship between CEO age and M&A performance is inverted U-shaped. AEM of pre-M&A is negatively correlated with M&A performance, indicating that M\&A performance is affected by AEM of pre-M&A.

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Xinmiao FANG, Jingxuan ZUO, Yilin GAO, Yan YU. CEO Age, Earnings Management and Mergers & Acquisitions Evidence from China. Journal of Systems Science and Information, 0 https://doi.org/10.21078/JSSI-E2022023

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National Natural Science Foundation of China (71972057) and the Key Project of Soft Science of Guangdong Provincial Department of Science and Technology (2020B1010010012)
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