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The past performance and the capital structure of the companies that are involved in mergers and acquisition (M&As) are considered into the analysis of the circular causality relationship between financial performance and market value. Considering two models, one for value relevance and one for accounting conservatism, this paper aims to analyze if the capital market influences the accounting practices of a target company or that the accounting figures influence the capital market. The analyzed sample used in the study is represented by the target companies involved in M&As which took place in the European Union Enlarged in 2017–2018. Financial and market data were considered for eight years (2011–2018). Using the conservatism model, the results show that targets’ earnings are significantly influenced by their financial leverage as an indicator for financial structure. Using the value relevance model, the capital market reaction is influenced by prices and return on equity that indicates the capital market influence on accounting figures.

External growth strategies face crucial barriers when taken into consideration for investing if the involved companies are not audited. The integrity of a company’s financial information, its control systems, and its sustainable behavior represent cornerstones when participating in mergers and acquisitions (henceforth M&As). Thus, the audit function became a must and its role increased over the years, becoming an intrinsic part of faithfully disclosing financial and nonfinancial information (sustainable reporting included). M&As are ideal when the need for rapid innovation is required, in order to maintain or develop a sustainability policy. Given the environmental issues, we analyzed a sample of 1491 target companies listed on Bucharest Stock Exchange, clustered into three categories: polluters, medium polluters, and low polluters. The study reveals that the investors’ decision to purchase a certain amount of stake in target companies is influenced by the audit opinion and the sector in which they operate, depending on their pollution status.

The paper aims at describing two dimensions of acquirers' behaviour when purchasing minority shares in Romanian listed target companies, based on a sample of 710 Romanian minority acquisitions. The first dimension regards the acquirer's decision to invest a certain amount, being influenced by the profitability of the target company The relationship was found to be positive and significant. To test the model further, a sample of 308 transactions was used, after excluding the transactions involving primary sector and blue-chip target companies. The second dimension focuses on the amount of purchased stake, which leads to either financial gains or the takeover intention, under the influence of the target company's operational profit. The results show a positive and significant relationship for the small stakes and a non-significant one for the high stakes.

Purpose – The purpose of this paper is to identify the chances that a certain type of investor will purchase a stake in an industry target company, considering the accounting practices and / or the audit opinion, to which certain financial information is added, related to size and profitability. The influence of these factors on the acquisition decision, reflected in the deal value, is also analyzed. Methodology – For testing and validation of working hypotheses, multinomial logistic regression, generalized linear models and multiple correspondences analysis are used, considering a sample of 631 acquisitions from the Bucharest Stock Exchange (BSE).Results – The undisclosed investors (in most cases, individuals) are interested in the size of the company, while companies consider the quality of the information provided by the target company, which applies IFRS and has the financial statements accompanied by the opinion of an auditor. Profitability is a significant factor for unlisted investors. As for the price that these investors decide to pay in the transaction, it is positively influenced by all the factors mentioned above. Originality – The study provides an overview of the types of investors who acquire stakes on the BSE and of the factors that influence the chances that they will pay a certain price for equity stakes.

As a part of their strategic transactions, corporations often acquire stakes in other companies that do not grant them control, but allow them to use their resources to increase their profitability, access technological progress and innovation, develop products, or obtain dividends. The main objective of this paper is to identify the factors influencing the behavior of acquirers who buy securities in the capital of the target companies, listed on Bucharest Stock Exchange, without intending to control them. The study aims to describe two dimensions of the buyers' behavior, when they buy shares that do not lead to the control of the target companies (below 50%). The first dimension refers to the buyer's decision to invest in a certain share of capital, influenced by the profitability of the target company and its market capitalization (dimensions of their performance), but also by the audit opinion on the annual financial statements. The relationship is positive and significant. The second dimension focuses on the decision of the acquirers to invest or not in a blue-chip company (top companies, considered the most efficient and stable on the financial market), with the main purpose of obtaining dividends or trading the respective securities on the capital market, in order to generate cash flows. The result shows that investors buy small shares in blue chip companies, compared to other companies, taking into account their performance and the audit opinion on the annual financial statements.

Corporations often acquire stakes in other companies. These stakes do or do not grant them control but they definitely allow the acquirers to use target companies’ resources to increase their profitability, access technological progress and innovation, develop products, or obtain dividends, as a part of their strategic transactions. The main objective of this article is to assess the stake purchased in acquisitions, based on information related to the size of the target companies and the premium paid, based on a sample of 2.565 acquisitions which involved at least one Romanian company, for the 2010-2018 period of time. The result show that the influence is negative and significant for the entire sample. When considering the accounting practices of the target companies, large stakes are purchased in companies which apply local GAAP, compared to IFRS. The second part of the study focuses on Romanian mergers, which are regulated separately by the OMPF no. 897/2015. In the case of these transactions, the target companies, in most cases, report a negative book value of equity.

Corporations often acquire stakes in other companies. These stakes do or do not grant them control but they definitely allow the acquirers to use target companies’ resources to increase their profitability, access technological progress and innovation, develop products, or obtain dividends, as a part of their strategic transactions. The main objective of this article is to assess the stake purchased in acquisitions, based on information related to the size of the target companies and the premium paid, based on a sample of 2.565 acquisitions which involved at least one Romanian company, for the 2010-2018 period of time. The result show that the influence is negative and significant for the entire sample. When considering the accounting practices of the target companies, large stakes are purchased in companies which apply local GAAP, compared to IFRS. The second part of the study focuses on Romanian mergers, which are regulated separately by the OMPF no. 897/2015. In the case of these transactions, the target companies, in most cases, report a negative book value of equity.

Corporations often acquire stakes in other companies. These stakes do or do not grant them control but they definitely allow the acquirers to use target companies’ resources to increase their profitability, access technological progress and innovation, develop products, or obtain dividends, as a part of their strategic transactions. The main objective of this article is to assess the stake purchased in acquisitions, based on information related to the size of the target companies and the premium paid, based on a sample of 2.565 acquisitions which involved at least one Romanian company, for the 2010-2018 period of time. The result show that the influence is negative and significant for the entire sample. When considering the accounting practices of the target companies, large stakes are purchased in companies which apply local GAAP, compared to IFRS. The second part of the study focuses on Romanian mergers, which are regulated separately by the OMPF no. 897/2015. In the case of these transactions, the target companies, in most cases, report a negative book value of equity.

Companiile obişnuiesc să achiziţioneze integral sau părţi în alte companii. Aceste participaţii pot sau nu să le confere achizitorilor control asupra companiilor ţintă, dar cu siguranţă le permit să utilizeze resursele acestora pentru a-şi creşte rentabilitatea, a avea acces la progresul tehnologic şi inovaţie, a dezvolta produse sau a obţine dividende, ca parte a tranzacţiilor lor strategice. Obiectivul principal al acestui articol este de a evalua cota achiziţionată, pe baza informaţiilor referitoare la mărimea companiilor ţintă şi prima achitată în tranzacţie, pe baza unui eşantion de 2.565 de achiziţii care au implicat cel puţin o companie românească, în perioada 2010-2018. Rezultatele arată că influenţa este negativă şi semnificativă pentru întregul eşantion. Când sunt luate în calcul reglementările contabile aplicate de compania ţintă, rezultatele arată că sunt cumpărate cote ridicate în companiile care aplică reglementările naţionale, comparativ cu situaţia celor care aplică IFRS. A doua parte a studiului se concentrează pe fuziunile româneşti, care sunt reglementate separat de OMPF nr. 897/2015. în cazul acestor tranzacţii, companiile ţintă, în majoritatea cazurilor, raportează o valoare negativă a capitalului propriu.

Scop - Scopul acestei lucrări îl reprezintă identificarea şanselor ca un anumit tip de investitor să investească întro companie ţintă din domeniul industriei, ţinând cont de practicile contabile practicate şi/sau opinia de audit, la care se adaugă anumite informaţii financiare ce ţin de mărime şi rentabilitate. De asemenea, este analizată influenţa acestor factori asupra deciziei de achiziţie, reflectată în valoarea tranzacţiei. Metodologie - Pentru testarea şi validarea ipotezelor de lucru sunt utilizate regresia multinominală logistică, modelele liniare generalizate şi analiza factorială a corespondenţelor multiple, folosind un eşantion de 631 achiziţii de la Bursa de Valori Bucureşti. Rezultate - Investitorii neidentificaţi (în speţă, persoanele fizice) sunt interesaţi de mărimea companiei, în timp ce investitorii persoane juridice au în vedere calitatea informaţiilor transmise de compania ţintă, care aplică IFRS şi are situaţiile financiare anuale asupra cărora auditorii îşi exprimă o opinie. Rentabilitatea este un factor de influenţă pentru investitorii nelistaţi. Preţul pe care aceşti investitori decid să îl plătească în tranzacţie este influenţat pozitiv de toţi factorii anterior menţionaţi. Originalitate - Studiul oferă o perspectivă asupra tipurilor de investitori care activează la BVB şi asupra factorilor care influenţează şansele ca ei să plătească un anumit preţ pentru cota de capital.