The Financial Effects of Takeover: Accounting Rates of Return and Accounting Regulation

Chatterjee, Rakesh; Meeks, Geoff

doi:10.1111/j.1468-5957.1996.tb01155.x

Cited by 66 publications

(58 citation statements)

References 32 publications

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“…This result is consistent with the results of some studies (Kumar, 1984;Healy et al, 1992;Chatterjee and Meeks, 1996;Ghosh, 2001;Srivastava and Prakash, 2014). However, it is not consistent with the results of some other studies that found a decline of the profitability ratios (Meeks, 1977;Salter and Weinhold, 1979;Mueller, 1980;Kusewitt, 1985;Ravenscraft and Scherer, 1987;Dickerson et al, 1997;Sharma and Ho, 2002;Oduro and Agyei, 2013;Pantelidis et al, 2014;Rodionov and Mikhalchuk, 2016 (in crisis periods).…”

Section: Evaluation Of Accounting Performance After Mergersupporting

confidence: 65%

“…Therefore, the examination of accounting performance and the financial statements of a firm for the merger decision is a better and safer path (Healy et al, 1992;Chatterjee and Meeks, 1996;Ramaswamy and Waegelein, 2003;Marfo et al, 2013;Halimahton et al, 2014;Muhammad and Zahid, 2014;Oruc et al, 2014). Thus, the sample processing and examination in the study were Accounting data analysis with financial statements and ratios provide useful information regarding companies" merger decisions in general and more specifically on taxation issues (Auerbach and Reishus, 1987a;Landsman and Shackelford, 1995;Chatterjee and Meeks, 1996;Seetharaman et al, 2008;Becker and Fuest, 2011;Belz et al, 2013).…”

Section: Methodology Accounting Measures-quantitative Variablesmentioning

confidence: 99%

“…Thus, the sample processing and examination in the study were Accounting data analysis with financial statements and ratios provide useful information regarding companies" merger decisions in general and more specifically on taxation issues (Auerbach and Reishus, 1987a;Landsman and Shackelford, 1995;Chatterjee and Meeks, 1996;Seetharaman et al, 2008;Becker and Fuest, 2011;Belz et al, 2013). All the ratios that were used are presented and analyzed in Table 1.…”

Section: Methodology Accounting Measures-quantitative Variablesmentioning

confidence: 99%

“…Many past studies on post-merger performance that employed accounting ratios and were conducted during the last decades supported an improvement in the corporate performance after the M&As action (Cosh et al, 1980;Parrino and Harris, 1999;Vijayakumar and Sridevi, 2013;Muhammad and Zahid, 2014;Oruc Erdogan and Erdogan, 2014;Rao-Nicholson et al, 2016), while others claimed that there was a deterioration in the post-merger firm performance (Meeks, 1977;Salter and Weinhold, 1979;Mueller, 1980;Kusewitt, 1985;Ravenscraft and Scherer, 1987;Dickerson et al, 1997;Sharma and Ho, 2002;Oduro and Agyei, 2013), and some others concluded a "zero" result or ambiguous results from the M&As action (Kumar, 1984;Healy et al, 1992;Chatterjee and Meeks, 1996;Ghosh, 2001;Srivastava and Prakash, 2014;Rodionov and Mikhalchuk, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…This kind of research, along with their explanations, could partially not be correct as many other factors influence stock prices and their conclusions do not provide clear consciousness of their result argumentation; the use of post-merger accounting data (and especially, financial ratios) is a better and safer path to test directly for changes in accounting performance that result from mergers than stock price studies (Healy et al, 1992;Chatterjee and Meeks, 1996).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Mergers, taxation and accounting performance: Some evidence from Greece

Pazarskis¹,

Drogalas²,

Koutoupis³

2017

J. Account. Taxation

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The study examines the merger effects on the accounting performance of Greek firms, in parallel with their taxation impact, during the period of economic crisis in Greece. The study analyses twelve accounting measures from financial statements and financial ratios of a sample of Greek listed firms in the Athens Exchange that carried out one merger in the period from 2010 to 2015 as acquirers. The results revealed that none of the twelve examined accounting measures have changed significantly due to the merger event, one year after the merger transaction. Different results are proposed regarding the impact of the type of industry, as the findings of the study indicate a better accounting performance for the constructions firms than the others from our sample. Furthermore, the study investigates the impact of the new Greek Income Tax Code (GITC) (Law 4172/2013) that refers to the corporate restructuring in Greece. There is evidence that there is some effect from the new GITC and it provides further opportunities for capital gains, not subject to tax from mergers, during the period of the economic crisis in Greece.

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Section: Evaluation Of Accounting Performance After Mergersupporting

confidence: 65%

Section: Methodology Accounting Measures-quantitative Variablesmentioning

confidence: 99%

Section: Methodology Accounting Measures-quantitative Variablesmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Mergers, taxation and accounting performance: Some evidence from Greece

Pazarskis¹,

Drogalas²,

Koutoupis³

2017

J. Account. Taxation

View full text Add to dashboard Cite

show abstract

Finanzwirtschaftliche Erfolgsmessung von M&A: Ergebnisse vom österreichischen Markt

Brunner-Kirchmair

Pernsteiner

2016

Post-Merger-Integration Im Mittelstand

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Pre-Acquisition Profile of Privately Held Companies Involved in Take-Overs: An Empirical Study

2005

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This study addresses the pre-acquisition financial characteristics of privately held, rather small acquiring and acquired companies involved in 143 Belgian take-overs between 1992 and 1994. Specifically, the research examines the profitability, liquidity, financial structure, added value and failure risk using statistical analysis of industryadjusted variables. Our findings show that acquisition is not an alternative to bankruptcy since acquired companies do not report high failure risk, but exhibit higher than industry liquidity and solvency. The acquirers achieve a higher growth rate in total assets and sales than the acquired firms but experience a negative industry-adjusted liquidity and are highly levered, suggesting evidence for a growth-resource mismatch within, but a financial fit between acquirers and their targets. Copyright Springer 2005

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The Financial Effects of Takeover: Accounting Rates of Return and Accounting Regulation

Cited by 66 publications

References 32 publications

Mergers, taxation and accounting performance: Some evidence from Greece

Mergers, taxation and accounting performance: Some evidence from Greece

Finanzwirtschaftliche Erfolgsmessung von M&A: Ergebnisse vom österreichischen Markt

Pre-Acquisition Profile of Privately Held Companies Involved in Take-Overs: An Empirical Study

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