We use short interest as an investor-based measure of over/undervaluation that distinguishes between the misvaluation and Q-theories of mergers. Using this measure, we find that misvaluation is a strong determinant of merger decision making. Firms in the top quintile of short interest are 54%...

This paper investigates the effects of analyst recommendations issued after a merger announcement on deal completion. We find the probability of completion increases (decreases) with the favorability of acquirer (target) recommendations. Results from instrumental variables tests support...

We document a strong positive initial market reaction to merger announcements from bidders with either large earnings growth or significant earnings decline, relative to those with neutral earnings change, reflecting a U-shaped pattern between bidders’ earnings growth and announcement returns....

We find strong evidence that analysts tend to have downward-biased earnings estimates immediately before merger announcement dates when earning announcement date is within a 60 day window prior to merger announcement date. Compared to pure stock deals, acquirer stocks in cash-only deals tend to...

Strategische Entscheidungen und die Trennung von Eigentum und Kontrolle -- Reputation im Zusammenspiel von Kapitalgebern und Management -- Die Bewertung von M&A-Transaktionen -- Die amerikanische Banken- und Telekommunikationsindustrie -- Empirische Untersuchung -- Fazit und Schlussbemerkungen.

We study whether and how financial analysts choose tone during earnings conference calls as a means to acquire information from the firm’s management. Analyzing 32,963 analyst-managerinteractions during conference calls of the S&P 500 firms, we document that analyst questions that are...

We find strong evidence that analysts tend to have downward-biased earnings estimates immediately before merger announcement dates when earning announcement date is within a 60 day window prior to merger announcement date. Compared to pure stock deals, acquirer stocks in cash-only deals tend to...