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Communication Dans Un Congrès Année : 2022

The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune

Résumé

Mergers and acquisitions are often motivated by the intention of creating value from intangible assets. We develop a novel word list of intangibles and apply it to takeover announcements. The value of these deals to the acquirer, as shown by abnormal announcement returns, is questionable: One standard deviation more in intangibles talk lowers returns by 0.50 percentage points. Agency problems explain little of these results. Rather, the cross-section of announcement returns, payment mode choices, and insider trades suggest that intangibles talk reflects managerial overoptimism. In sum, takeover announcements reveal important information regarding the quality of deals.
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Dates et versions

hal-04042892 , version 1 (03-04-2023)

Identifiants

  • HAL Id : hal-04042892 , version 1

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Zoran Filipovic, Alexander Wagner. The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune. The 7th Inter Business-School Finance Seminar, Apr 2022, Sophia Antipolis, France. ⟨hal-04042892⟩
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