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M&A Due Diligence: How to Uncover Corruption
Author(s) -
Byington J. Ralph,
McGee Jo Ann
Publication year - 2015
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22050
Subject(s) - due diligence , shareholder , business , accounting , diligence , language change , earnings , cash , earnings management , balance (ability) , cash flow , finance , corporate governance , medicine , psychology , social psychology , art , literature , physical medicine and rehabilitation
Corporate balance sheets in the United States currently show an excess of cash. And to make earnings‐conscious shareholders happy, many corporate managers will funnel that cash into more merger‐and‐acquisition (M&A) activity. But M&A is never without risk, warn the authors of this article. And they caution managers that their M&A due diligence should not overlook the existence of possible corruption and bribery in an acquired company. The authors also include a handy checklist to help corporate managers find possible problems when examining a target company. © 2015 Wiley Periodicals, Inc.