'She Is Mine': Determinants and Value Effects of Early Announcements in Takeovers

The differential impact of corporate blockchain-development as conditioned by sentiment and financial desperation

“…Rumours are powerful drivers of interest in a company and can generate abnormal returns as indicated by Chauvin and Shenoy [2001], Palomino et al [2009], Jindra and Walkling [2004] and Aktas et al [2018]. Given the role of rumours, it is plausible to see that companies that are smaller and more speculative in motive pursuing a high risk/high reward strategy that will generate rapid equity price responses.…”

“…To investigate Hypothesis H 3 we set out to investigate as to whether the corporate decision to initiate speculative blockchain-development projects coincided with two specific characteristic changes: significantly weak cash holdings and elevated levels of corporate leverage in comparison to industrial peers. Both are characteristics of companies who are in a particularly vulnerable financial positions (Aktas et al [2019]; Dermine [2015]; Cai and Zhang [2011]; Choe [2003]; Acharya et al [2012]; Arnold [2014]; Aktas et al [2018]). To test for such effects, we build on the work of Cathcart et al [2020] and estimate a logit regression estimates for the four specifications as presented in Table 12.…”

Abandonment of mergers and acquisitions: a review and research agenda

“…Preventing leakage of information is vital for merger negotiation (Ngo and Susnjara, 2016). However, an early strategic announcement about the synergies reduces friction and increases completion (Aktas et al , 2018). Target shareholders speculate about the valuation post-takeover, and an acquirer with a reputation to overbid is favored (Hirshleifer and Titman, 1990).…”

Voluntary disclosure volume: Evidence from acquiring firm's press releases during M&A

“…The study examines the voluntary disclosure practices measured by the press release volume of acquiring firms around merger and acquisition (M&A). The literature on M&A disclosure has been concentrating on the disclosure behaviors before or around the initial plan announcement (eg, Ahern & Sosyura, 2014; Aktas et al., 2018; Dutordoir et al., 2014; Fraunhoffer et al., 2018; Kimbrough & Louis, 2011). M&A is an extended business process that ranges from the initial negotiation, the public announcement to the final resolution.…”

“…The literature of M&A disclosures largely concentrates on the deal announcement period (eg, Dutordoir et al., 2014; Fraunhoffer et al., 2018; Kimbrough & Louis, 2011). Some examine the disclosure practices around the negotiation period (eg, Ahern & Sosyura, 2014; Aktas et al., 2018). This study focuses on the disclosure practice during the transaction period with an intent to examine the determinants and outcomes of firms’ voluntary disclosure during the M&A transaction period.…”