Equity Valuation Implications of Purchase Versus Pooling Accounting

摘要: This research is motivated by claims that firms using the pooling method of accounting for business combinations enjoy significant share price premiums over purchase method, despite absence cash flow differences between two methods. Previous examines valuation implications goodwill and amortization firms. The author whether there are associated with methods or investors adjust firms' reported numbers so they value on an equivalent basis. results indicate some advantage firms, but difference not differences.