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|
Available under License - Creative Commons Attribution Non-commercial No Derivatives.
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|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/|
|Date accepted:||16 March 2018|
|Date deposited:||19 March 2018|
|Date of first online publication:||21 March 2018|
|Date first made open access:||21 March 2019|
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