Studies That Compare Post-Merger Accounting Profitability with the Pre-Merger Accounting

question 29

Multiple Choice

Studies that compare post-merger accounting profitability with the pre-merger accounting profitability of the companies involved show little consistency.This is because: it to the companies' performance prior to merging.The problem here is separating
The effects of the merger from the multitude of other factors that influence
Companies' performance over time.returns fails to provide conclusive evidence on the performance outcomes of mergers and acquisition is that:

• A)The identification problem: it is difficult to distinguish the effects of mergers from the many other factors that influence profitability
• B)The effects of mergers on profitability are diverse
• C)Both (a)and (b)
• D)Neither (a)nor (b)-we do not know why studies of the effects of mergers on firm performance have been s inconclusive

---

Definitions:

Persuasion

The process of changing another person's attitudes, beliefs, or behaviors through argumentation, appeal, or explanation.

Persuasive Message

Communication intended to influence the attitudes, beliefs, or behaviors of others through argumentation, appeals, or other means.

Arguments

Statements or reasons given with the aim of persuading others that an action or idea is right or wrong.

Elaboration Likelihood Model

A theory in social psychology that explains how attitudes are formed and changed through two routes of persuasion: central and peripheral.