In the spirit of Merton (1987) we find that targeted communication by firms raises investor attention. Continental European firms using English-language commercial press wires to disseminate corporate press releases exhibit less drift and more trading volume after their earnings announcements...

I analyze loan loss reserves during the Global Financial Crises in the late 2000s. I develop a regression model that separates the loan loss reserve account into discretionary and nondiscretionary components. The nondiscretionary (expected) component is based on current, past due, restructured,...

In 2009, for the first time since the end of World War II, the world economy shrank. This resulted from the economic downturn in highly developed countries and surprised most economists. According to the IMF forecast published in spring 2008, GDP growth in these countries was expected to...

The present paper is carried out with the objective of studying what shift-in-structure is experienced especially in the operating performance (OP) after merger and acquisitions (M&AS) by studying 39 selected acquiring manufacturing firms in India. The firms, which had gone in to the M&AS...

We examine the textual content of merger and acquisition related SEC filings in an effort to understand the role of managerial attitudes and beliefs in merger negotiations and outcomes. Using a textual algorithm to identify the degree to which filings of bidders and targets exhibit...

This paper examines the role of R&D intensity in cross border strategic alliance formation. Firms can exploit their existing R&D capabilities by entering into overseas markets via strategic alliances. Consistent with our hypothesis, we find R&D intensity to be a major determinant of cross-border...

Modern portfolio theory suggests that investors minimize risk for a given level of expected return by carefully choosing the proportions of various assets. This study sets out to determine the role of the institutional investor in monitoring risk and firm performance. Using a sample of...

Why do some banks fail in financial crises while others survive? This article answers this question by analysing the effect of the Dutch financial crisis of the 1920s on 142 banks, of which 33 failed. We find that choices of balance sheet composition and product market strategy made in the...

This paper develops a dynamic model of tender offers in which there is trading on the target's shares during the takeover, and bidders can freeze out target shareholders (compulsorily acquire remaining shares not tendered at the bid price), features that prevail on almost all takeovers. We show...

This study investigates the firms' performance following cross-border mergers and acquisitions (M&As) from 2000 to 2022, employing the generalized method of moments (GMM) technique within the French context. Grounded in the theories of organizational learning and the institutional-based view,...