M&A rumors about unlisted firms

• 成果类型: Article
• 署名作者: Alperovych, Yan; Cumming, Douglas; Czellar, Veronika; Groh, Alexander
• 署名单位: emlyon business school; State University System of Florida; Florida Atlantic University; SKEMA Business School; University of Birmingham
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.012
• 发表日期: 2021
• 页码: 1324-1339
• 关键词: mergers; acquisitions; Rumors; Unlisted firms; indirect inference

摘要

We examine 68,044 completed or abandoned M&A transactions involving unlisted targets to determine the effect of transaction rumors on deal-closing propensity and transaction values. Estimation is challenging because rumors may be spread on purpose or emerge accidentally while transaction values are only observable for completed deals and no regulation requires to disclose them. We use indirect inference to overcome these challenges. We find that (a) M&A rumors are deal breakers, (b) rumored but closed deals have higher transaction values, and (c) the combined economic impact of (a) and (b) is negative: in expectation rumors destroy about 32% of transaction value. (c) 2021 Elsevier B.V. All rights reserved.