澳门威斯尼斯游戏网址

2020年11月10日学术报告通知

发布时间:2020-11-06

内容提要:

In the M&A process, uncertainty impairs acquirers’ ability to assess targets’ intrinsic value as well as the expected synergy created from business combinations. Consistent with acquirers’knowledge of potential downsides of targets’ business improving M&A quality, we  document that the similarity between merging firms’ potential business downsides, measured with  qualitative risk factor disclosures, is positively related to merger announcement returns, especially  when acquirers face a greater level of uncertainty. We also find that downside risk similarity  improves operating performance and reduces the likelihood of divestiture and incurring high  restructuring costs in the post-merger period. Acquirers are more likely to pair with targets with  more similar downside risks, more likely to complete deals with such targets, and pay less in equity  in such deals, consistent with less uncertainty facilitating target selection and deal negotiation.