Consequences of the choices on the accounting methods and the payment methods for acquirers and targets: A comparative study between NYSE/AMEX and NASDAQ for the nineties.

摘要

In the nineties, the number of mergers has been increasing dramatically due to the emergence of the global economy and the research of the critical size and the optimal strategy. This thesis investigates the choice of accounting method (pooling versus purchasing) and the choice of the method of payment (cash versus stock) for mergers in the 90's. We identify significant differences in market response to mergers when the targets were listed on the NYSE/Amex or on the NASDAQ.;We found that mergers in the two markets tend to behave differently. When targets are listed on the NYSE, the bidder characteristics drive the choice. While, when targets are listed on the NASDAQ, the target characteristics tend to drive the choice. Finally, we found that targets listed on the NASDAQ get higher Abnormal Returns compared to targets listed on the NYSE/Amex.