Information Asymmetry and Firm Value: New Insights from Mergers and Acquisitions
Event details
| Date | 28.06.2016 |
| Hour | 12:15 › 13:15 |
| Speaker | Chinmoy GHOSH (University of Connecticut, School of Businness) |
| Location | |
| Category | Conferences - Seminars |
We examine the relation between information asymmetry (IA) and firm value using M&A as the identification strategy. Due to the due diligence and intense scrutiny of the target around M&A announcements, acquisitions are significant shocks to a target’s IA. We find that M&A announcement-period wealth gains are significantly related to target’s IA, and that opaque firms are more likely to be targets, and less likely to experience deal withdrawals. Furthermore, we find that the party with high IA is in a weaker position when negotiating the deal. Finally, we document that target IA influences method of payment, and the likelihood of diversifying deals
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Practical information
- Informed public
- Free
Organizer
- Unil, Institute of Banking and Finance