The research project will examine CPA firms' effect on merger and acquisition transactions. CPA firms play a critical role in the business, especially in merger and acquisition transactions. Both sides in M&A transactions would like to hire a CPA firm separately to complete the value estimation of M&A transactions. The value estimation from these CPA firms influences both sides' price strategy in M&A transactions. Our project focuses on how the CPA firm choice of the acquirer and the acquiree affect the value and success of M&A transactions. 

The project aims at the empirical study on the past ten years of M&A transactions and explores the effect of different CPA choices from the acquirers and the acquirees on the final value of M&A transactions. We will classify the choices into three categories: 1). Both sides chose the same CPA firm in one M & M&A transaction; 2) Both sides chose the same CPA firm, which was one of Big-4 ; 3) Both sides chose the same CPA firm, not Big-4. Our project will firstly estimate the effect of CPA firm choice on the value of M&A transactions. Secondly, it will be evaluated whether hiring reputational CPA firms impacts the value of M&A transactions. Finally, we would like to conclude whether a CPA firm's choice does matter in M&A transactions.

We will obtain data on all mergers and acquisitions in Nasdaq and NYSE in the past ten years. Later we would like to build a statistical model to complete an empirical study. Our research results will have significant implications for regulators like SEC, the CPA profession, and companies that are interested in M&A. I will apply what I have learned in finance courses such as financial statement analysis, financial accounting, auditing, and firm valuation.