The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions
We investigate whether acquiring firms make more profitable acquisitions when target firms’ financial statements are more comparable with their industry peers. We replicate the original sample of Chen et al. (2018) and extend their sample to the most recent year. We find that acquiring firms experie...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | English |
| Published: |
Wiley-Blackwell
2021
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/85091 |
| _version_ | 1848764714275831808 |
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| author | Duong, Lien Truong, Thu Phuong |
| author_facet | Duong, Lien Truong, Thu Phuong |
| author_sort | Duong, Lien |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We investigate whether acquiring firms make more profitable acquisitions when target firms’ financial statements are more comparable with their industry peers. We replicate the original sample of Chen et al. (2018) and extend their sample to the most recent year. We find that acquiring firms experience higher announcement returns, higher acquisition synergies and better post-acquisition operating performance when acquiring targets with higher financial statement comparability. Our results are robust to the newly constructed measure of financial statement comparability, suggesting that comparable accounting information indeed facilitates the efficiency of capital allocation. |
| first_indexed | 2025-11-14T11:23:45Z |
| format | Journal Article |
| id | curtin-20.500.11937-85091 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:23:45Z |
| publishDate | 2021 |
| publisher | Wiley-Blackwell |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-850912023-04-14T03:13:21Z The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions Duong, Lien Truong, Thu Phuong 1501 - Accounting, Auditing and Accountability We investigate whether acquiring firms make more profitable acquisitions when target firms’ financial statements are more comparable with their industry peers. We replicate the original sample of Chen et al. (2018) and extend their sample to the most recent year. We find that acquiring firms experience higher announcement returns, higher acquisition synergies and better post-acquisition operating performance when acquiring targets with higher financial statement comparability. Our results are robust to the newly constructed measure of financial statement comparability, suggesting that comparable accounting information indeed facilitates the efficiency of capital allocation. 2021 Journal Article http://hdl.handle.net/20.500.11937/85091 10.1111/acfi.12774 English Wiley-Blackwell fulltext |
| spellingShingle | 1501 - Accounting, Auditing and Accountability Duong, Lien Truong, Thu Phuong The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title | The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title_full | The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title_fullStr | The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title_full_unstemmed | The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title_short | The Role of Target’s Financial Statement Comparability in the Efficiency of Takeover Decisions |
| title_sort | role of target’s financial statement comparability in the efficiency of takeover decisions |
| topic | 1501 - Accounting, Auditing and Accountability |
| url | http://hdl.handle.net/20.500.11937/85091 |