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Do acquiring firms achieve their mergers and acquisitions objectives? Evidence from Japan

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  • Yoshiaki Amano

Abstract

This study assessed whether acquiring firms achieve the objectives of mergers and acquisitions (M&A) that are presented in their press releases and financial statements. It examined the usefulness of disclosing the M&A objectives to investors by analysing a sample of 232 M&A conducted between Japanese firms. The findings show that disclosed M&A objectives regarding profitability, efficiency, and growth are not usually realised. The results also show that describing M&A objectives in financial statements leads to higher short‐term stock returns while the stock market adjusts the valuation of firms based on their actual performance in the long run.

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  • Yoshiaki Amano, 2022. "Do acquiring firms achieve their mergers and acquisitions objectives? Evidence from Japan," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2905-2945, June.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:2:p:2905-2945
    DOI: 10.1111/acfi.12909
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