Katherine Schipper, Financial Distress in Private Colleges, Journal of Accounting Research, Vol. 15, Studies on Measurement and Evaluation of the Economic Efficiency of Public and Private Nonprofit Institutions (1977), pp. 1-40

Katherine Schipper, [Discussion of Financial Distress in Private Colleges]: A Reply, Journal of Accounting Research, Vol. 15, Studies on Measurement and Evaluation of the Economic Efficiency of Public and Private Nonprofit Institutions (1977), pp. 52-53

Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Share Icon Share Facebook Twitter LinkedIn MailTo Tools Icon Tools Get Permissions Search Site Cite View This Citation Add to Citation Manager Citation Katherine Schipper; Required Disclosures in Financial Reports. The Accounting Review 1 March 2007; 82 (2): 301–326. https://doi.org/10.2308/accr.2007.82.2.301 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentThe Accounting Review Search Advanced Search

Reviews the book "Information Economics and Accounting Research: A Workshop Conducted by Joel S. Demski," edited by Gerald Lobo and Michael Maher.

Preface

Methodology, Exact distributions of test statistics

Business combinations, Regulatory changes, Net benefits of estimated future acquisition activity, Regulation

This paper investigates share price reactions of parent firms to announcements of public offerings of stock of wholly-owned subsidiaries. The average abnormal gains associated with ‘equity carve-out’ announcements contrast with the average abnormal losses documented here and elsewhere upon announcements of public offerings of parent equity. Four features distinguishing equity carve-outs from parent equity offerings are discussed. Evidence is provided on these features as potential explanations for the positive average share price reaction associated with announcements of equity carve-outs.

We measure the impact of acquisitions activity on firm value by differentiating between specific merger events and programs of acquisition activity. Based on a sample of conglomerate acquirers, we find significantly positive abnormal performance associated with the announcement of acquisitions programs and significantly negative performance associated with certain institutional changes of 1967–1970 relating to acquisition activity (the Williams Amendments, the 1969 Tax Reform Act, and APB Opinions 16 and 17). Our results support the hypotheses that acquisitions activity had a favorable ex ante impact on the value of firms announcing an intention to engage in acquisitions, and that some of the institutional changes reduced the expected profitability of future acquisitions activity. The basic results of studies of mergers and tender offers are reviewed and their consistency with our findings highlighted.

This paper investigates the effect of voluntary corporate spin-off announcements on shareholder wealth. A significant positive share price reaction is documented for 93 voluntary spin-off announcements between 1963 and 1981. These shareholder gains do not appear to come wholly at the expense of bondholders. Evidence suggests the gains to shareholders may arise from tax and regulatory advantages and/or improved managerial efficiency resulting from the spin-off.