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Topic
Publication year
Who Writes the News? Corporate Press Releases During Merger Negotiations
Resource type
Authors/contributors
- Ahern, Kenneth R. (Author)
- Sosyura, Denis (Author)
Title
Who Writes the News? Corporate Press Releases During Merger Negotiations
Abstract
Firms have an incentive to manage media coverage to influence their stock prices during important corporate events. Using comprehensive data on media coverage and merger negotiations, we find that bidders in stock mergers originate substantially more news stories after the start of merger negotiations, but before the public announcement. This strategy generates a short-lived run-up in bidders' stock prices during the period when the stock exchange ratio is determined, which substantially impacts the takeover price. Our results demonstrate that the timing and content of financial media coverage may be biased by firms seeking to manipulate their stock price.
Publication
The Journal of Finance
Volume
69
Issue
1
Pages
241-291
Date
2014
Citation
Ahern, K. R., & Sosyura, D. (2014). Who Writes the News? Corporate Press Releases During Merger Negotiations. The Journal of Finance, 69, 241–291.
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