Quotation 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.


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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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Publication's profile

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)
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