국제회계기준 동조화와 국가간 인수합병의 성과에 관한 연구

Abstract

[Purpose] This study investigates the effect of International Financial Reporting Standards (IFRS) harmonization on bidder’s M&A profitability. We assume that the usage of a similar business language amongst countries will reduce the costs and errors in identifying profitable investments in foreign countries and thus lead to positive market reaction to M&A announcements. We further predict that the positive association between accounting standard convergence and M&A profitability extends to post－acquisition performance. [Methodology] Using a sample of cross－country mergers and acquisitions from the period of 2001－2016, we examine whether the M&A profitability is greater when both the bidder and the target firms adopt the same IFRS. [Findings] We find that the three－day cumulative abnormal return (3－day CAR) and change in return on assets (ΔROA) are greater for M&A deals made after the period when both the bidder and the target adopt mandatory IFRS. Further, we document that this positive association between the IFRS harmonization and M&A profitability is pronounced when the bidder’s market is developed. In other words, even if IFRS conciliation facilitates the bidder on identifying a profitable project, if the bidder domiciles in the lessdeveloped market, then investors do not react positively to the M&A news. This implies that the positive effect of the IFRS harmonization is not realized by unification itself, but should be combined with market supporting institutions. [Policy Implications] The results of this study shed new light on the direction of the regulation in that not only the harmonization of financial reporting standards but also the development of market institutions that help investors be informed are important in making capital markets more efficient.