2020年11月10日学术报告通知

发布时间:2020-11-10

内容摘要In the M&A process, uncertainty impairs acquirers’ ability to assess targets’ intrinsic value as well as the expected synergy created from business combinations. Consistent with acquirers’ knowledge of potential downsides of targets’ business improving M&A quality, we document that the similarity between merging firms’ potential business downsides, measured with qualitative risk factor disclosures, is positively related to merger announcement returns, especially when acquirers face a greater level of uncertainty. We also find that downside risk similarity improves operating performance and reduces the likelihood of divestiture and incurring high restructuring costs in the post-merger period. Acquirers are more likely to pair with targets with more similar downside risks, more likely to complete deals with such targets, and pay less in equity in such deals, consistent with less uncertainty facilitating target selection and deal negotiation.