Fraunhoffer, R. ; Kim, H. Y. ; Schiereck, D. (2018)
Value Creation in M&A Transactions, Conference Calls, and Shareholder Protection.
In: International Journal of Financial Studies, 6 (1)
doi: 10.3390/ijfs6010005
Article, Bibliographie
This is the latest version of this item.
Abstract
This study investigates whether conference calls accompanying M&A announcements in Europe provide valuable information for capital market participants and hence induce an abnormal stock price revaluation on the bidder’s equity. Based on handpicked data for transactions between 2008 and 2012 we focus on the five most acquisitive country markets in Europe. Overall, our results show that bidders are more likely to conduct conference calls with increasing transaction value, for transactions with public targets and non-diversifying transactions. Further, the decision for voluntary disclosure is positively influenced by increased bidder size and the comparably weaker governance systems for German and Swiss firms. After controlling for self-selection bias and other determinants of stock returns around mergers and acquisitions (M&A) announcement, evidence is in strong support that firms with merger-related conference calls yield a higher abnormal return than firms merely publishing a press release. However, significant favourable investor reaction is only present in the UK and French subsamples and in the subsamples of industries with a focus on research and development (R&D).
| Item Type: | Article |
|---|---|
| Erschienen: | 2018 |
| Creators: | Fraunhoffer, R. ; Kim, H. Y. ; Schiereck, D. |
| Type of entry: | Bibliographie |
| Title: | Value Creation in M&A Transactions, Conference Calls, and Shareholder Protection |
| Language: | English |
| Date: | 2018 |
| Place of Publication: | Basel |
| Publisher: | MDPI |
| Journal or Publication Title: | International Journal of Financial Studies |
| Volume of the journal: | 6 |
| Issue Number: | 1 |
| DOI: | 10.3390/ijfs6010005 |
| Corresponding Links: | |
| Abstract: | This study investigates whether conference calls accompanying M&A announcements in Europe provide valuable information for capital market participants and hence induce an abnormal stock price revaluation on the bidder’s equity. Based on handpicked data for transactions between 2008 and 2012 we focus on the five most acquisitive country markets in Europe. Overall, our results show that bidders are more likely to conduct conference calls with increasing transaction value, for transactions with public targets and non-diversifying transactions. Further, the decision for voluntary disclosure is positively influenced by increased bidder size and the comparably weaker governance systems for German and Swiss firms. After controlling for self-selection bias and other determinants of stock returns around mergers and acquisitions (M&A) announcement, evidence is in strong support that firms with merger-related conference calls yield a higher abnormal return than firms merely publishing a press release. However, significant favourable investor reaction is only present in the UK and French subsamples and in the subsamples of industries with a focus on research and development (R&D). |
| Uncontrolled Keywords: | mergers & acquisitions, conference calls, voluntary disclosure, shareholder protection |
| Divisions: | 01 Department of Law and Economics 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Corporate finance |
| Date Deposited: | 05 Jun 2018 15:15 |
| Last Modified: | 19 Jul 2024 09:54 |
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| Suche nach Titel in: | TUfind oder in Google |
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Value Creation in M&A Transactions, Conference Calls, and Shareholder Protection. (deposited 21 Nov 2023 13:47)
- Value Creation in M&A Transactions, Conference Calls, and Shareholder Protection. (deposited 05 Jun 2018 15:15) [Currently Displayed]
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