The Role of Accounting Quality in the M&A Market

• Autores: Carol Marquardt, Emanuel Zur
• Localización: Management science: journal of the Institute for operations research and the management sciences, ISSN 0025-1909, Vol. 61, Nº. 3, 2015, págs. 604-623
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We examine the role of target firms’ accounting quality in the merger and acquisition process. We predict that target firm accounting quality will be positively associated with (1) the likelihood that the deal will be structured as a negotiation rather than as an auction, (2) the speed with which the deal reaches final resolution, and (3) the likelihood that the proposed deal is ultimately completed. Our empirical evidence is consistent with these predictions. These results complement and extend existing findings on target firm accounting quality and provide new evidence that financial accounting quality relates positively to the efficient allocation of the economy’s capital resources.