Disentangling the link between stock and accounting performance in acquisitions

While empirical studies that use event-study methodology find on average that the gains from mergers and acquisitions are positive, those focusing on accounting figures tend to find a significant drop in performance. We argue that each of the four possible combinations between positive or negative abnormal stock returns and accounting performance is due to a distinct acquisition motive. We find strong empirical evidence in support of this claim.

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Year of publication:	2011
Authors:	Betzer, André ; Goergen, Marc
Publisher:	Wuppertal : University of Wuppertal, Schumpeter School of Business and Economics
Subject:	Übernahme \| Motivation \| Synergie \| Börsenkurs \| Betriebliche Kennzahl \| Unternehmenserfolg \| USA \| Mergers and acquisitions \| performance measurement \| synergies \| preemption \| overvaluation \| corporate governance \| agency problems

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Series:	Schumpeter Discussion Papers ; 2011-010
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	66763472X [GVK] hdl:10419/68713 [Handle]
Classification:	G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; G3 - Corporate Finance and Governance ; G14 - Information and Market Efficiency; Event Studies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010291123