The Role of the Media in Takeovers: Theory and Evidence

54 Pages Posted: 1 Nov 2010 Last revised: 24 Sep 2016

Date Written: February 26, 2015

Abstract

Using text-based media content, this paper develops and empirically confirms a theory that explains how the media predicts takeover outcomes. It shows that positive media content about the acquirer predicts takeover success. Relative to other predictors proposed in the literature, the media measure is the most important explanatory variable in terms of marginal effect, significance, and goodness of fit.

Keywords: Mergers and Acquisitions (M&A), Takeovers, Media, News, Text-Based Information

JEL Classification: G34, C11, D82, C72

Suggested Citation

Buehlmaier, Matthias M. M., The Role of the Media in Takeovers: Theory and Evidence (February 26, 2015). Available at SSRN: https://ssrn.com/abstract=1673164 or http://dx.doi.org/10.2139/ssrn.1673164

Matthias M. M. Buehlmaier (Contact Author)

The University of Hong Kong ( email )

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HOME PAGE: http://www.buehlmaier.net/

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