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The Effects Of Acquisition On Restaurant Firms’ Performance: Different-Sector Versus Same-Sector Acquisitions, Yongjin Lee
The Effects Of Acquisition On Restaurant Firms’ Performance: Different-Sector Versus Same-Sector Acquisitions, Yongjin Lee
Open Access Theses
This study examines the postacquisition accounting performance of acquiring firms in the restaurant industry between 1992 and 2012. Specifically, this study investigates the effects of different-sector and same-sector restaurants acquisitions between full-service and limited-service restaurants on restaurant firms' performance. Additionally, the Wilcoxon signed-rank test and regression model are used to examine return on assets (ROA) and return on equity (ROE) for the accounting performance of the acquiring restaurants.
The ROA and ROE reveal that the profitability is significantly negative up to 5 years after firms are acquired. However, negative effects are strongest within the first year after acquisition and decrease …