Common auditors and cross-country M&A transactions

Chircop, Justin and Tarsalewska, Monika and Johan, Sofia (2018) Common auditors and cross-country M&A transactions. Journal of International Financial Markets, Institutions and Money, 54. pp. 43-58. ISSN 1042-4431

[img]
Preview
PDF (Common auditors and cross-country M&A transactions)
Common_auditors_and_cross_country_M_A_transactions_.pdf - Accepted Version
Available under License Creative Commons Attribution-NonCommercial-NoDerivs.

Download (675kB)

Abstract

Using a comprehensive sample of cross-country mergers and acquisitions for the period 2000 to 2014 we examine the effect of common auditors on the efficiency of cross-country M&A transactions. We predict that the use of common auditors reduces uncertainty, resulting in higher M&A efficiency. We find that this common-auditor effect results in a positive market reaction to the M&A announcement, lower premium and greater increase in return on assets following the M&A transaction. Further, we find that these effects are more pronounced the greater the M&A transaction uncertainty and when the accounting standards of parties differ.

Item Type: Journal Article
Journal or Publication Title: Journal of International Financial Markets, Institutions and Money
Additional Information: This is the author’s version of a work that was accepted for publication in Journal of International Financial Markets, Institutions and Money. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Financial Markets, Institutions and Money, 54, 2018 DOI: 10.1016/j.intfin.2017.04.001
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 85828
Deposited By: ep_importer_pure
Deposited On: 05 Apr 2017 09:08
Refereed?: Yes
Published?: Published
Last Modified: 07 Dec 2019 04:18
URI: https://eprints.lancs.ac.uk/id/eprint/85828

Actions (login required)

View Item View Item