Firms covered by more analysts are more likely to become takeover targets and more likely to enter deals in which their acquirers initiate private merger negotiations. Moreover, when equity analysts' pre-acquisition price forecasts imply greater target undervaluation, target firms are more...

Acquirer CEOs with experience in the target's industry supply chain (‘supply chain CEOs') are associated with wealth effects of first-order importance: they earn 1% higher merger announcement returns. Conversely, their targets get a lower share of the merger gains. Acquisitions by supply chain...

We examine completed M&A deals with large acquirer shareholder dollar wealth gains at announcement. We find that large-gain acquisitions are (i) typically “bolt-on” deals that are small relative to the acquirer's size; (ii) transaction-specific events (not firm- nor CEO-specific events);...

Full Paper is available at: "https://www.ssrn.com/abstract=2526509" https://www.ssrn.com/abstract=2526509In this Internet Appendix, we perform further tests in order (i) to assess the robustness of the main findings, (ii) to evaluate whether the magnitude of our results changes in different...

We study the impact of the Domestic Production Activities Deduction (DPAD) on mergers and acquisitions. DPAD reduces corporate tax rates on income from work or goods made in the US. Results indicate that the quantity and quality of acquisition bids by DPAD-advantaged firms conform to the...

Appendix is available at: "https://ssrn.com/abstract=3304137" https://ssrn.com/abstract=3304137Consistent with hypotheses underlying firm advertising, we find that targets with pre-takeover advertising obtain higher premiums, while their acquirers earn lower announcement returns. These...

Takeover targets covered by more equity analysts receive higher premiums while their acquirers earn lower merger announcement returns. We confirm these results using exogenous shocks to coverage as instruments for coverage loss. The analyses also show that covered targets experience a permanent...