This paper examines the relationship between the quality of accountings earnings and long-run performance for South African acquirers in the context of market-to-book value classifications. Glamour acquirers show significant earnings momentum prior to acquisition; however this momentum is not sustainable. In the period after the acquisition glamour acquirers exhibit a decreasing earnings trend and it is found that South African value acquirers outperform value acquirer’s post-acquisition. This paper does not however identify the determinant of this phenomenon as the hypothesis that the pre-acquisition earnings momentum of glamour acquirers is in part bolstered by their aggressive investments is rejected.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/11977 |
| Date | 21 September 2012 |
| Creators | Govender, Avishkar |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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