Often, management justifies huge mergers and acquisitions (M&A) with accretive earnings. That earnings per share (EPS) would increase post-M&A. Are accretive earnings a good measure of shareholder value? One of the best ways to probe whether you can trust the advice that a theory is offering you is to look for anomalies—something that the theory cannot explain.
Are Earnings Accretive Acquisitions Good?
Are Earnings Accretive Acquisitions Good?
Are Earnings Accretive Acquisitions Good?
Often, management justifies huge mergers and acquisitions (M&A) with accretive earnings. That earnings per share (EPS) would increase post-M&A. Are accretive earnings a good measure of shareholder value? One of the best ways to probe whether you can trust the advice that a theory is offering you is to look for anomalies—something that the theory cannot explain.