This study examines whether acquirers make better acquisition decisions when target firms' financial statements exhibit greater comparability with industry peer firms. We predict and find that acquirers make more profitable acquisition decisions when target firms' financial statements are more...

The lack of publicly available information about privately-held target firms exacerbates acquirers’ adverse selection risk in private target M&As. Although acquirers have access to inside information about the private target during the due diligence process, a number of constraints and market...