Duso, Tomaso, Gugler, Klaus, Yurtoglu, B. Burcin. 2010. Is the Event Study Methodology Useful for Merger Analysis: A Comparison of Stock Market and Accounting Data. International Review of Law and Economics 30 (2): 186-192.
BibTeX
Abstract
This paper presents empirical evidence about the ability of event studies to capture mergers ex-post profitability as measured by accounting data. We use a sample of large horizontal concentrations during the period 1990-2002 involving 482 firms either as merging firms or competitors, and contrast a measure of the mergers profitability based on stock market event studies with one based on balance sheet profit data. We show that using a long window around the announcement date (25 or 50 days before the event) increases the ability to capture the ex-post merger effect: the pairwise correlation coefficient is positive and highly significant.
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Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | International Review of Law and Economics |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, STRAT-B, WH-B |
Language | English |
Title | Is the Event Study Methodology Useful for Merger Analysis: A Comparison of Stock Market and Accounting Data |
Volume | 30 |
Number | 2 |
Year | 2010 |
Page from | 186 |
Page to | 192 |
Reviewed? | Y |
Associations
- People
- Gugler, Klaus (Details)
- External
- Duso, Tomaso (WZB - Wissenschaftszentrum Berlin für Sozialforschung, Germany)
- Yurtoglu, B. Burcin (Universität Wien, Austria)
- Organization
- Research Institute for Regulatory Economics FI (Details)
- Institute for Quantitative Economics IN (Details)