This study finds that pro-forma earnings forecasts by bidding firms during acquisitions are associated with a higher likelihood of deal completion, expedited deal closing, and with a lower acquisition premium − but only in stock-financed acquisitions. Analysts also respond to these forecasts...

Previous studies of the impact of M&A on performance have employed a range of measures of “profitability” or “rate of return”. Sometimes they have provided little in the way of rationalization; and sometimes the most appropriate measures have not been deployed for testing the chosen...

This study investigates whether and how voluntary disclosure affects the earnings announcement premium (EAP). Using S&P500 index additions as an exogenous source of variation to voluntary disclosures, we test the effect of guidance on information risk and investor attention as drivers of the...