Guo, M. and Hu, N. and Li, L. and Wang, X. (2019) 'Do managers keep their word? the disclosure of merger intention at pre-merger issuance and M&A performance.', Finance research letters., 28 . pp. 20-31.
This 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.
|Full text:||(AM) Accepted Manuscript|
First Live Deposit - 19 March 2018
Available under License - Creative Commons Attribution Non-commercial No Derivatives.
Download PDF (649Kb)
|Publisher Web site:||https://doi.org/10.1016/j.frl.2018.03.007|
|Publisher statement:||© 2018 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/|
|Record Created:||19 Mar 2018 09:28|
|Last Modified:||21 Mar 2019 09:18|
|Social bookmarking:||Export: EndNote, Zotero | BibTex|
|Look up in GoogleScholar | Find in a UK Library|