M & A(dvertising)


Ruenzi, Stefan ; Kunzmann, Anja ; Hillert, Alexander



URL: https://editorialexpress.com/cgi-bin/conference/do...
Document Type: Conference or workshop publication
Year of publication: 2017
Book title: The American Finance Association 2019 Annual Meeting : January 4-6, 2019 in Atlanta, GA, 2019 Preliminary Program and Ph.D. Poster Session
Page range: 1-47
Conference title: American Finance Association 2019 Annual Meeting
Location of the conference venue: Atlanta, GA
Date of the conference: 04.-06.01.2019
Publisher: Hirshleifer, David
Place of publication: Salt Lake City, UT
Publishing house: American Finance Association
Publication language: English
Institution: Business School > Internat. Finanzierung (Ruenzi)
Subject: 330 Economics
Abstract: We investigate the advertising strategies of firms in mergers and acquisitions. Target firms increase their advertising expenses, on average, by 50% in the quarter before the announcement of a stock deal. Higher offer prices for high-advertising target firms suggest product advertising being a tool to attract investors’ attention, which may result in temporarily increased stock prices. For acquiring firms, we observe no increase in advertising before but a significant increase in the week after the announcement of a stock deal. The positive relation between acquirer advertising and the probability of deal completion indicates that advertising can positively influence target shareholders’ attitude towards the deal. Overall, our findings support the role of product market advertising as a strategic tool to affect the outcomes of M&As.
Additional information: Online-Ressource

Dieser Eintrag ist Teil der Universitätsbibliographie.




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Ruenzi, Stefan ORCID: 0000-0002-6492-1701 ; Kunzmann, Anja ; Hillert, Alexander M & A(dvertising). Hirshleifer, David 1-47 In: The American Finance Association 2019 Annual Meeting : January 4-6, 2019 in Atlanta, GA, 2019 Preliminary Program and Ph.D. Poster Session (2017) Salt Lake City, UT American Finance Association 2019 Annual Meeting (Atlanta, GA) [Conference or workshop publication]


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