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

Duso, Tomaso, Gugler, Klaus and Yurtoglu, Burcin B. (September 2006): Is the Event Study Methodology Useful for Merger Analysis? A Comparison of Stock Market and Accounting Data. SFB/TR 15 Discussion Paper No. 163

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.

• Item Type: Paper
• Keywords: Mergers, Merger Control, Event Studies, Ex-post Evaluation
• Faculties: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C5 - Wettbewerbspolitik als Steuerung von Wettbewerbsprozessen
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: L4, K21, G34
• Language: English