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

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Definitions:

Estimator's Squared Bias

The squared difference between an estimator's expected value and the true value of the parameter being estimated.

Variance

The average of the squared differences from the Mean, measuring the spread between numbers in a data set.

Point Estimate

A single value or statistic that serves as the best guess or most probable value of an unknown population parameter.

Population Parameter

A numerical value that summarizes a characteristic of an entire population.