Do Managers Keep Their Word The Disclosure of Merger Intention at Pre-merger Issuance and M&A Performance.pdf (431.61 kB)
Do managers keep their word? The disclosure of merger intention at pre-merger issuance and M&A performance
journal contribution
posted on 2023-09-21, 08:45 authored by Jie Michael Guo, Lu LiLu Li, Nan Hu, Xing WangThis paper investigates whether disclosing merger intention at the announcement of equity/debt issuance has an impact on subsequent M&A transactions. We find that companies tend to issue higher proceeds when they reveal their merger intentions, and, subsequently, they are more likely to complete the merger deal itself and pay a higher bid premium. However, we did not find a significant difference in merger performance between firms revealing merger intention and others. Our finding is consistent with the capital need theory.
History
School
- Loughborough Business School
Published in
Finance Research LettersVolume
28Pages
20 - 31Publisher
ElsevierVersion
- AM (Accepted Manuscript)
Rights holder
© ElsevierPublisher statement
This paper was accepted for publication in the journal Finance Research Letters and the definitive published version is available at https://doi.org/10.1016/j.frl.2018.03.007Acceptance date
2018-03-16Publication date
2018-03-21Copyright date
2018ISSN
1544-6123eISSN
1544-6131Publisher version
Language
- en