Guo, J. (M.), Li, L., Hu, N. 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. (doi: 10.1016/j.frl.2018.03.007)
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Abstract
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.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Hu, Dr Nan |
Authors: | Guo, J. (M.), Li, L., Hu, N., and Wang, X. |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Finance Research Letters |
Publisher: | Elsevier |
ISSN: | 1544-6123 |
ISSN (Online): | 1544-6131 |
Published Online: | 21 March 2018 |
Copyright Holders: | Copyright © 2018 Elsevier Inc. |
First Published: | First published in Finance Research Letters 28:20-31 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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