Market-Based Studies Are Associated with Positive Wealth Effects for Takeovers,yet

question 32

Multiple Choice

Market-based studies are associated with positive wealth effects for takeovers,yet studies using accounting numbers have not found this.A possible explanation for this discrepancy is that:

• A)some takeovers are good investments whilst others are bad investments.
• B)benefits of a takeover may take years to be fully reflected in accounting earnings.
• C)market-based studies suffer from potential measurement problems.
• D)benefits of a takeover may take years to be fully reflected in accounting earnings and that market-based studies suffer from potential measurement problems.

---

Definitions:

Alzheimers

A progressive neurological disorder characterized by memory loss, cognitive decline, and personality changes, caused by the accumulation of amyloid plaques and neurofibrillary tangles in the brain.

Metabolic Changes

Alterations in the body's chemical processes that convert food into energy, which can affect health and bodily functions.

Hypothalamus

A region of the brain that regulates various autonomic nervous system functions, including temperature control, thirst, hunger, sleep, mood, and sexual desire.

Ventromedial

Referring to a position towards the bottom and middle of a structure or an organ, often used in neuroscience to describe a part of the brain.