Common auditors and cross-country M&A transactions

Justin Chircop, Sofia Johan, Monika Tarsalewska

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Using a comprehensive sample of cross-country mergers and acquisitions for the period 2000–2014 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.
Original languageEnglish
Pages (from-to)43-58
Number of pages16
JournalJournal of International Financial Markets, Institutions and Money
Volume54
Early online date7 Apr 2017
DOIs
Publication statusPublished - May 2018

Fingerprint Dive into the research topics of 'Common auditors and cross-country M&A transactions'. Together they form a unique fingerprint.

  • Cite this