Is the Event Study Methodology Useful for Merger Analysis? A Comparison of Stock Market and Accounting Data

Using a sample of 167 mergers during the period 1990-2002 involving 544 firms either as merging firms or competitors, we contrast a measure of the merger's profitability based on event studies with one based on accounting data. We find positive and significant correlations between them when using a long window around the announcement date and, for rivals, in case of anticompetitive mergers.

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Year of publication:	2006
Authors:	Duso, Tomaso ; Gugler, Klaus ; Yurtoglu, Burcin B.
Publisher:	München : Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
Subject:	Mergers \| Merger Control \| Event Studies \| Ex-post Evaluation

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Series:	SFB/TR 15 Discussion Paper ; 163
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.5282/ubm/epub.13388 [DOI] 78887022X [GVK] hdl:10419/94154 [Handle] RePEc:trf:wpaper:163 [RePEc]
Classification:	L4 - Antitrust Policy ; K21 - Antitrust Law ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
Source:	EconStor

Persistent link: https://www.econbiz.de/10010334131