Chulalongkorn University Theses and Dissertations (Chula ETD)
Year (A.D.)
2019
Document Type
Independent Study
First Advisor
Kanis Saengchote
Faculty/College
Faculty of Commerce and Accountancy (คณะพาณิชยศาสตร์และการบัญชี)
Department (if any)
Department of Banking and Finance (ภาควิชาการธนาคารและการเงิน)
Degree Name
Master of Science
Degree Level
Master's Degree
Degree Discipline
Finance
DOI
10.58837/CHULA.IS.2019.66
Abstract
This study examines the influence of Purchase Price Allocation (PPA) on investors’ decision making in Thailand by utilising the completed M&A deals which the acquirers listed on the Stock Exchange of Thailand and are over 50% owned after transactions during 2010 – 2019. I investigate how purchase price allocation to goodwill impacts on stock return reaction surrounding the announcement of final PPA information and inspect an association between percentage of goodwill allocated to the identifiable intangible assets and potential earnings per share (EPS) dilution. However, I do not find the supporting evidence to indicate that the investors react to the final disclosure of PPA information and the percentage of goodwill allocated to the identifiable intangible assets. Moreover, my findings do not show that the PPA information may be influenced by management preferences since there is no evidence that the percentage of goodwill allocated to the identifiable intangible assets and potential EPS dilution are correlated.
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Recommended Citation
U-thisanonth, Nonthawan, "Do Investors React to Purchase Price Allocation?" (2019). Chulalongkorn University Theses and Dissertations (Chula ETD). 6932.
https://digital.car.chula.ac.th/chulaetd/6932