Do Chinese managers listen to the media?: Evidence from mergers and acquisitions |
| |
Institution: | 1. School of Business Administration, Dongbei University of Finance & Economics, China;2. School of Economics and Management, Hebei University of Technology, China |
| |
Abstract: | This study investigates whether listed companies in China are sensitive to public media coverage when making investment decisions regarding mergers and acquisitions (M&As). We find that the likelihood of abandoning a proposed M&A transaction is positively associated with negative media coverage, and this association is stronger with lower announcement abnormal returns. Our analysis demonstrates that the negative information effect is amplified for glamour acquirers. We argue that negative media reactions drive the external feedback mechanism of M&A attempts and help guard against managerial hubris. |
| |
Keywords: | Mergers and acquisitions Media coverage Management decision |
本文献已被 ScienceDirect 等数据库收录! |