Author First name, Last name, Institution

Eda Orhun

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.

ISSN

1916-971X

Publisher

Canadian Center of Science and Education

Volume

7

First Page

217

Disciplines

Business

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Indexed in Scopus

no

Open Access

yes

Open Access Type

Hybrid: This publication is openly available in a subscription-based journal/series

Included in

Business Commons

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