Who Writes the News? Corporate Press Releases during Merger Negotiations

• 成果类型: Article
• 署名作者: Ahern, Kenneth R.; Sosyura, Denis
• 署名单位: University of Southern California; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12109
• 发表日期: 2014
• 页码: 241-291
• 关键词: STOCK-PRICE REACTION; information asymmetry; PROPRIETARY COSTS; cross-section; Media slant; MARKET; INVESTMENT; BIAS; disclosure; valuation

摘要

Firms have an incentive to manage media coverage to influence their stock prices during important corporate events. Using comprehensive data on media coverage and merger negotiations, we find that bidders in stock mergers originate substantially more news stories after the start of merger negotiations, but before the public announcement. This strategy generates a short-lived run-up in bidders' stock prices during the period when the stock exchange ratio is determined, which substantially impacts the takeover price. Our results demonstrate that the timing and content of financial media coverage may be biased by firms seeking to manipulate their stock price.