Guo, Jie (Michael), Li, Lu, Hu, Nan and Wang, Xing (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. ISSN 1544-6123

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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:	Article
Schools and Departments:	University of Sussex Business School > Accounting and Finance
SWORD Depositor:	Mx Elements Account
Depositing User:	Mx Elements Account
Date Deposited:	06 Jan 2022 09:25
Last Modified:	17 Feb 2022 11:10
URI:	http://sro.sussex.ac.uk/id/eprint/103708

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