Disentangling the link between stock and accounting performance in acquisitions

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Schumpeter Discussion Papers ; No. 2011-010

Classification and Topics

• Classification: Wirtschaft ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Information and Market Efficiency; Event Studies; Insider Trading
• Subject: Mergers and acquisitions ; performance measurement ; synergies ; preemption ; overvaluation ; corporate governance ; agency problems ; Übernahme ; Motivation ; Synergie ; Börsenkurs ; Betriebliche Kennzahl ; Unternehmenserfolg ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Betzer, André ; Goergen, Marc
• Event: Veröffentlichung
• (who): University of Wuppertal, Schumpeter School of Business and Economics
• (where): Wuppertal
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/68713
• URN: urn:nbn:de:hbz:468-20110722-124418-2
• Last update: 10.03.2025, 11:44 AM CET