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: Suggested Citation
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