The role of target’s financial statement comparability in the efficiency of takeover decisions

We investigate whether acquiring firms make more profitable acquisitions when target firms’ financial statements are comparable with their industry peers. replicate the original sample of Chen et al. (2018) and extend to most recent year. find that experience higher announcement returns, acquisition synergies better post-acquisition operating performance targets statement comparability. Our results robust newly constructed measure comparability, suggesting accounting information indeed facilitates efficiency capital allocation.