Document Type
Article
Source of Publication
International Journal of Economics and Finance
Publication Date
2-25-2015
Abstract
This paper analyzes a target firm's decision to voluntarily disclose information during a takeover event and the effect of such disclosures on the outcome of the takeover. In the model the acquirer may also run a media campaign. The model predicts that a voluntary disclosure of positive information by the target decreases the likelihood that the takeover succeeds. The empirical analysis confirms this prediction by showing that positive earnings forecasts by target firms during takeover events increase the probability of takeover failure. Overall, it is shown that information dissemination through voluntary disclosures by target firms is an important factor affecting takeover outcomes.
DOI Link
ISSN
Publisher
Canadian Center of Science and Education
Volume
7
First Page
217
Disciplines
Business
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Orhun, Eda, "Defence versus Offence: Disclosure and Media in Takeovers" (2015). All Works. 1176.
https://zuscholars.zu.ac.ae/works/1176
Indexed in Scopus
no
Open Access
yes
Open Access Type
Hybrid: This publication is openly available in a subscription-based journal/series