The Role of Accounting Quality in the M&A Market

• 成果类型: Article
• 署名作者: Marquardt, Carol; Zur, Emanuel
• 署名单位: City University of New York (CUNY) System; Baruch College (CUNY); University System of Maryland; University of Maryland College Park
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2013.1873
• 发表日期: 2015
• 页码: 604-623
• 关键词: Mergers and acquisitions; auctions; NEGOTIATIONS; accounting quality

摘要

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.