Disentangling the Link Between Stock and Accounting Performance in Acquisitions

Andre Betzer () and Marc Goergen
Additional contact information
Andre Betzer: University of Wuppertal

No sdp11010, Schumpeter Discussion Papers from Universitätsbibliothek Wuppertal, University Library

Abstract: 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.

Keywords: Mergers and acquisitions; performance measurement; synergies; preemption; overvaluation; corporate governance; agency problems (search for similar items in EconPapers)
JEL-codes: G14 G3 G34 (search for similar items in EconPapers)
Pages: 49
Date: 2011-07
New Economics Papers: this item is included in nep-acc, nep-cfn, nep-com and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://elekpub.bib.uni-wuppertal.de/ubwhsmig/down ... riginalFilename=true (application/pdf)

Related works:
Journal Article: Disentangling the link between stock and accounting performance in acquisitions (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bwu:schdps:sdp11010

Access Statistics for this paper

More papers in Schumpeter Discussion Papers from Universitätsbibliothek Wuppertal, University Library
Bibliographic data for series maintained by Frank Hoffmann ().