The impact of analyst following on merger performance

Jie Han; Gaoliang Tian; Hua Feng

doi:10.12011/1000-6788(2016)02-0400-13

The impact of analyst following on merger performance

Jie Han
, Gaoliang Tian
, Hua Feng

School of Management

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

Based on the information asymmetry perspective, this paper chooses mergers and acquisitions (M&A) between Chinese A-share listed firms in year 2004-2013 and mainly studies whether target analyst following impact merger economic outcomes, including merger performance of acquirer firms and target firms. Through empirical test, the results show that target analyst following can negatively impact the short-term merger performance of acquirer firms and positively impact the short-term merger performance of target firms. Simultaneously, target analyst following has a significantly negative impact on acquirer firms' long-term financial performance and market reaction. This paper provides new interpretation to the "merger premium puzzle" in Chinese stock market.

Original language	English
Pages (from-to)	400-412
Number of pages	13
Journal	Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice
Volume	36
Issue number	2
DOIs	https://doi.org/10.12011/1000-6788(2016)02-0400-13
State	Published - 25 Feb 2016

Keywords

Analyst following
Event study
Information asymmetry
Merger performance

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10.12011/1000-6788(2016)02-0400-13

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title = "The impact of analyst following on merger performance",

abstract = "Based on the information asymmetry perspective, this paper chooses mergers and acquisitions (M\&A) between Chinese A-share listed firms in year 2004-2013 and mainly studies whether target analyst following impact merger economic outcomes, including merger performance of acquirer firms and target firms. Through empirical test, the results show that target analyst following can negatively impact the short-term merger performance of acquirer firms and positively impact the short-term merger performance of target firms. Simultaneously, target analyst following has a significantly negative impact on acquirer firms' long-term financial performance and market reaction. This paper provides new interpretation to the {"}merger premium puzzle{"} in Chinese stock market.",

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T1 - The impact of analyst following on merger performance

AU - Han, Jie

AU - Tian, Gaoliang

AU - Feng, Hua

PY - 2016/2/25

Y1 - 2016/2/25

N2 - Based on the information asymmetry perspective, this paper chooses mergers and acquisitions (M&A) between Chinese A-share listed firms in year 2004-2013 and mainly studies whether target analyst following impact merger economic outcomes, including merger performance of acquirer firms and target firms. Through empirical test, the results show that target analyst following can negatively impact the short-term merger performance of acquirer firms and positively impact the short-term merger performance of target firms. Simultaneously, target analyst following has a significantly negative impact on acquirer firms' long-term financial performance and market reaction. This paper provides new interpretation to the "merger premium puzzle" in Chinese stock market.

AB - Based on the information asymmetry perspective, this paper chooses mergers and acquisitions (M&A) between Chinese A-share listed firms in year 2004-2013 and mainly studies whether target analyst following impact merger economic outcomes, including merger performance of acquirer firms and target firms. Through empirical test, the results show that target analyst following can negatively impact the short-term merger performance of acquirer firms and positively impact the short-term merger performance of target firms. Simultaneously, target analyst following has a significantly negative impact on acquirer firms' long-term financial performance and market reaction. This paper provides new interpretation to the "merger premium puzzle" in Chinese stock market.

KW - Analyst following

KW - Event study

KW - Information asymmetry

KW - Merger performance

UR - https://www.scopus.com/pages/publications/84965080999

U2 - 10.12011/1000-6788(2016)02-0400-13

DO - 10.12011/1000-6788(2016)02-0400-13

M3 - 文章

AN - SCOPUS:84965080999

SN - 1000-6788

VL - 36

SP - 400

EP - 412

JO - Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice

JF - Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice

IS - 2

ER -

The impact of analyst following on merger performance

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Keywords

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