Voluntary Disclosure of Profit Forecasts by Target Companies in Takeover Bids
This paper examines factors influencing voluntary forecast disclosure by target companies, whether good/bad news forecasts are disclosed and the influence of forecasts on the outcome of hostile bids. Disclosure was significantly more likely during contested bids. In agreed bids, probability of forecast disclosure was greater the shorter the bid horizon. In contested bids, forecasts were more likely where there were large block shareholdings, for larger targets and for targets in the capital goods industry. There was a clear tendency to disclose good news forecasts. A significant positive association between forecast disclosure and increase in offer price was found. Copyright Blackwell Publishers Ltd 1999.
Year of publication: |
1999-09
|
---|---|
Authors: | Brennan, Niamh |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 26.1999-09, 7&8, p. 883-917
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Merkl-Davies, Doris M., (2007)
-
An empirical examination of forecast disclosure by bidding companies
Brennan, Niamh, (2000)
-
Employment and remuneration of Irish chartered accountants : evidence of gender differences
Brennan, Niamh, (1998)
- More ...