Literature has extensive discussions on the driving forces of takeover activities, including investor sentiment, liquidity, and fundamental shocks. We examine how manager sentiment affects takeover characteristics and long-term performance by using data constructed from textual analysis based on...

We investigate how M&A activities are used to allocate R&D resources within firm boundaries. We find that Chinese listed firms exhibit strong intra-firm R&D reallocation behaviors following M&A activities from 2007 to 2017. Specifically, they shift innovation activities to subsidiary firms. The...

We evaluate the economic consequences of the performance commitment clauses for acquisition deals from 2007 to 2017 in China. We find that acquisition aggressiveness is positively associated with failure of delivering performance commitment. Such effect is alleviated in cash-paid deals but is...

We evaluate whether the adoption of performance commitment clauses in M&A deals affects the corporate liquidity of acquirers. Using a sample of Chinese M&A deals from 2007 to 2020, we find that firms signing performance commitment clauses in acquisitions are associated with lower liquidity,...