Bidder Gains in Takeovers with Shared Auditor
Peer reviewed, Journal article
Published version
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Date
2022Metadata
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- Publikasjoner fra Cristin [3207]
- SAM - Handelshøyskolen [391]
Original version
Journal of Insurance and Financial Management. 2022, 5 (4), 30-57.Abstract
Are abnormal returns in bidder and target companies higher in a takeover when auditor is shared? We find that abnormal returns are higher in bidder companies but weaker in target companies with a shared auditor compared to companies without both on announcement day and days before. The rationale is that a shared auditor contributes to better informed valuation. We obtain a sample of 202 mergers and acquisitions completed in Norway between 2005 and 2017. We use an event study methodology to uncover abnormal returns around the announcement period.