IFRS harmonization and cross-country M&A performance

• 발행기관: 한국회계정보학회
• 저자명: 유승원(Seung Weon Yoo) 한승수(Soong Soo Han) 이은영(Eun Young Lee)
• 간행물 정보: 『한국회계정보학회 학술대회발표집』2018년 춘계학술대회 발표집, 337~372쪽, 전체 36쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2018.05.19

영문 초록

This study investigates the effect of International Financial Reporting Standards (IFRS) harmonization on bidder’s M&A profitability. We assume that the usage of a similar business language amongst countries will reduce the costs and errors on identifying profitable investments in foreign countries and thus lead positive market reaction to M&A announcements. We further predict that the positive association between accounting standard convergence and M&A profitability extends to post acquisition performance. Using a sample of cross-country mergers and acquisitions from the period of 2001-2016, we find that the threeday cumulative abnormal return (3-day CAR) and change in return on assets (∆ROA) are greater for M&A deals made after the period when both the bidder’s country and target’s country adopt mandatory IFRS. Further, we document that this positive association between IFRS harmonization and M&A profitability is pronounced when the bidder’s market is developed. In other words, even if IFRS conciliation facilitates the bidder on identifying a profitable project, if the bidder domiciles in less-developed market, then investors do not react positively to the M&A news. This implies that the positive effect of IFRS harmonization is not realized by unification itself, but should be combined with market supporting institutions.

목차

1. Introduction

2. Prior research and hypotheses development

3. Variable Measurement and Model Specification

4. Sample Selection and Descriptive Statistics

5. Empirical results

6. Conclusion

Reference

키워드

Accounting Information International Financial Reporting Standards Mandatory Adoption Merger and Acquisitions International Investment Market Development