Merger Premia and National Differences in Accounting for Goodwill

Frederick D. S. Choi · Chang-Woo Lee

33 citations0/0 files storedJournal of International Financial Management and Accounting

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting

Abstract

Abstract We examine the effects of international accounting diversity on the market for corporate control with particular reference to whether national differences in the treatment of purchased goodwill are associated with differences in premia offered by U.K. as opposed to U.S. acquirers of U.S. targets. We find merger premia associated with U.K. acquisitions to be consistently higher than those for U.S. acquisitions. Moreover, higher premiums offered by U.K. acquirors appear to be associated with not having to amortize goodwill to earnings. The evidence provided here suggests that national differences in accounting impact differentially on managerial behavior.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 33 citations exist upstream.

References

1968Internationally Diversified Portfolios: Welfare Gains and Capital Flows 1981On the Effects of Barriers to International Investment 1981Comparative International Accounting 1980Merger proposals, management discretion and stockholder wealth 1974International capital market equilibrium with investment barriers 1987Target abnormal returns associated with acquisition announcements: Payment, acquisition form, and managerial resistance 1988The Effect of Corporate Multinationalism on Shareholders' Wealth: Evidence from International Acquisitions 1977INVESTOR RECOGNITION OF CORPORATE INTERNATIONAL DIVERSIFICATION

Cited by

1999THE VALUE RELEVANCE AND MANAGERIAL IMPLICATIONS OF INTANGIBLES: A LITERATURE REVIEW 1 1992Effects of Alternative Goodwill Treatments on Merger Premia: Further Empirical Evidence 2000Accounting for goodwill: an examination of factors influencing management preferences 1995C apital M arkets R esearch A nd T he G oodwill D ebate 1996THE PURCHASE VS. POOLING CONTROVERSY: HOW THE STOCK MARKET RESPONDS TO GOODWILL

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.