• An empirical examination of financial reporting lags among small firms

      Van Caneghem, Tom; Van Uytbergen, Steve; Luypaert, Mathieu
      This paper studies how the presence of cross-border as opposed to domestic venture capital investors is associated with the growth of portfolio companies. For this purpose, we use a longitudinal research design and track sales, total assets and payroll expenses in 761 European technology companies from the year of initial venture capital investment up to seven years thereafter. Findings demonstrate how companies initially backed by domestic venture capital investors exhibit higher growth in the short term compared to companies backed by cross-border investors. In the medium term, companies initially backed by cross-border venture capital investors exhibit higher growth compared to companies backed by domestic investors. Finally, companies that are initially funded by a syndicate comprising both domestic and cross-border venture capital investors exhibit the highest growth. Overall, this study provides a more fine-grained understanding of the role that domestic and cross-border venture capital investors can play as their portfolio companies grow and thereby require different resources or capabilities over time.
    • Can auditors mitigate information asymmetry in M&A's? An empirical analysis of the method of payment in belgian transactions

      Luypaert, Mathieu; Van Caneghem, Tom (Auditing: A Journal of Practice and Theory, 2014)
    • Delay in filing the financial statements: An empirical analysis among small firms

      Van Caneghem, Tom; Luypaert, Mathieu; Van Uytbergen, Steve (2014)
      We examine delay in filing the financial statements among a large sample of Belgian small firms and find that reporting delay is affected by demand for information (e.g., larger firms tend to report more quickly); specific reporting incentives (e.g., firms tend to delay the disclosure of unfavorable information); and the financial reporting “production process” (e.g., older firms tend to report quickly, which is consistent with a learning curve effect). We note that there is a subsample of early filers, for which the drivers of financial reporting timeliness are found to be different from those identified based on the full sample. Our results further indicate that extremely late filings are associated with lower financial statement quality. Importantly, about 31 percent of the financial statements in our sample are being filed late (i.e., after the legal deadline), but our results suggest that monetary sanctions could be an effective tool in order to ensure compliance with the imposed legal deadline.
    • Exploring the Double-Sided Effect of Information Asymmetry and Uncertainty in Mergers and Acquisitions

      Luypaert, Mathieu; Van Caneghem, Tom (Financial Management, 2017)
      We examine the joint effect of bidder and target information asymmetry and uncertainty on the payment consideration and subsequent wealth effects in a large sample of acquisitions with both listed and private targets. In line with a risk-sharing argument, we find that acquisitions of targets characterized by higher uncertainty are more likely to be settled with stock. In contrast, higher target information asymmetry increases the likelihood of a cash payment, consistent with bidders strategically exploiting superior information. Acquirers of more opaque targets obtain a larger fraction of total acquisition gains and avoid sharing these gains with target shareholders by offering cash.
    • Financial statement filing lags: an empirical analysis among small firms

      Luypaert, Mathieu; Van Caneghem, Tom; Van Uytbergen, Steve (International Small Business Journal, 2016)
      This article examines financial statement filing lags among a sample of Belgian small firms. Our results indicate that around one-third of small firm financial statements are filed late (after the legal deadline), but that monetary sanctions could be an effective tool to encourage compliance with legal deadlines. Whereas the deadline and late filing sanctions are filing incentives, various factors, such as firm size and presence of an external financial statement audit, also affect financial statement filing lags. Evidence indicated that extremely late filings were associated with lower financial statement quality.