Skema Research > skema-event > fairr research seminar jose miguel gaspar nov 13

FAIRR Research seminar José-Miguel Gaspar - Nov. 13

José-Miguel Gaspar (ESSEC Business School) will present a paper titled: "Why do firms bundle earnings and acquisition announcements?" co-authored with Laurence Lescourret and Sumingyue Wang (ESSEC Business School).

​Abstract:

An increasing fraction of M&A deals are announced on the same day in which the bidder reports its quarterly earnings, a phenomenon we call ‘bundled’ announcements. Compared to other bids, bundled bids are associated with strongly lower bidder announcement returns. We investigate possible reasons for this practice. Our findings indicate that bundling is a tool of strategic disclosure akin to earnings management. Reported earnings of bundling acquirers are lower than those of other bidders. Bidders engage in bundling in moments of high investor attention, good earnings reports in the target industry, and when analysts’ views about the firm are divided.

 

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