A sizeable amount of empirical research attributes stock price crashes to agency reasons, predominantly on managerial bad news hoarding behaviour manifested through the financial reporting opacity channel. Admittedly, another prominent agency-based explanation, namely the overinvestment channel,...

M&A announcements can result in substantial positive or negative abnormal acquiring-firm stock returns and sizeable associated dollar value gains or losses. Unfortunately for decision makers tasked with evaluating potential deals, the existing M&A literature focuses on the in-sample analysis of...