search query: @indexterm COMPARATIVE RESEARCH / total: 215
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| Author: | Schoenberg, R. |
| Title: | Measuring the performance of corporate acquisitions: an empirical comparison of alternative metrics |
| Journal: | British Journal of Management
2006 : DEC, VOL. 17:4, p. 361-370 |
| Index terms: | comparative research performance measurement |
| Freeterms: | acquisitions |
| Language: | eng |
| Abstract: | This paper explores the comparability of four common measures of acquisition performance: cumulative abnormal returns, managers' assessments, divestment data and expert informants' assessments. Independently each of these measures indicated a mean acquisition success rate of between 44-56%, within a sample of British cross-border acquisitions. However, with the exception of a positive relationship between managers' and expert informants' subjective assessments, no significant correlation was found between the performance data generated by the alternative metrics. In addition, ex-ante capital market reactions to an acquisition announcement exhibited little relation to corporate managers' ex-post assessment. This is seen to reflect the information asymmetry that can exist between investors and company management, particularly regarding implementation aspects. |
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