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:	2011-07
Authors:	Betzer, Andre ; Goergen, Marc
Institutions:	Universitätsbibliothek Wuppertal, University Library
Subject:	Mergers and acquisitions \| performance measurement \| synergies \| preemption \| overvaluation \| corporate governance \| agency problems

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Extent:	application/pdf
Series:	Schumpeter Discussion Papers. - ISSN 1867-5352.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number sdp11010 4 pages long
Classification:	G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; G3 - Corporate Finance and Governance ; G14 - Information and Market Efficiency; Event Studies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009188461