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

Tomaso Duso, Klaus Gugler () and Burcin Yurtoglu

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: 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.

Keywords: Mergers; Merger Control; Event Studies; Ex-post Evaluation (search for similar items in EconPapers)
JEL-codes: G34 K21 L4 (search for similar items in EconPapers)
Date: 2006-09
New Economics Papers: this item is included in nep-bec, nep-com, nep-fin, nep-fmk and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Is the event study methodology useful for merger analysis? A comparison of stock market and accounting data (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:trf:wpaper:163

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