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Discussion of “Financial Statement Comparability and the Efficiency of Acquisition Decisions”

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  • April Klein

Abstract

Chen, Collins, Kravet, and Mergenthaler (CCKM, ) is an empirical investigation of whether, after controlling for other known determinants of an acquirer's abnormal stock returns and expected and realized synergies, financial statement comparability impacts the investment decisions surrounding the acquirer's purchase of another company. The primary result is that higher financial statement comparability, as measured by De Franco, Kothari, and Verdi (DKV, ), yields improvements on outcomes associated with mergers and acquisitions. This discussion presents some criticisms of the DKV measure as applied to this study; the main criticism being whether the DKV measure captures accounting comparability or the risk of the target firm. The empirical results presented in CCKM are consistent with both explanations, thus making it difficult to disentangle CCKM's interpretation from an alternative explanation of their empirical findings. Chen, Collins, Kravet et Mergenthaler (CCKM, 2018), dans leur étude empirique « Comparabilité des états financiers et efficience des décisions d'acquisition », se demandent si, après le contrôle des autres déterminants connus des rendements anormaux de l'action d'un acquéreur et des effets de synergie prévus et réalisés, la comparabilité des états financiers a une incidence sur les décisions d'investissement entourant l'achat par l'acquéreur d'une autre société. Leurs recherches révèlent principalement qu'une comparabilité plus grande des états financiers, selon la mesure proposée par DeFranco, Kothari et Verdi (DKV, 2011), entraîne une amélioration des résultats associés aux fusions et aux acquisitions. L'auteure formule certaines critiques à l'endroit de la mesure de DKV appliquée à cette étude et se demande notamment si cette mesure prend en compte la comparabilité des données comptables ou le risque associé à la société cible. Les résultats empiriques exposés par CCKM concordent avec ces deux explications, de sorte qu'il est difficile de faire la part entre l'interprétation de CCKM et une autre explication de leurs observations empiriques.

Suggested Citation

  • April Klein, 2018. "Discussion of “Financial Statement Comparability and the Efficiency of Acquisition Decisions”," Contemporary Accounting Research, John Wiley & Sons, vol. 35(1), pages 203-210, March.
  • Handle: RePEc:wly:coacre:v:35:y:2018:i:1:p:203-210
    DOI: 10.1111/1911-3846.12379
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