The Determinants of Synergy Disclosure by French Target Companies in Takeover Bids
45 Pages Posted: 19 Dec 2012
Date Written: December 18, 2012
We examine the determinants of voluntary synergy disclosure by target companies during takeover bids. The sample contains 124 French takeover bids between 1999 and 2011. The variables assumed to influence the targets’ synergy disclosure are the characteristics of the bid and the characteristics of both the target and the bidding companies. Disclosure is significantly more likely in the case of equity payment. Moreover, there is some evidence that i) CEO non-duality and the size of the target company; ii) the nationality of the bidder influence disclosure. Finally, the European Directive on Takeovers encourages targets to disclose synergy forecasts.
Keywords: synergy disclosure, target companies, takeover bids, determinants
JEL Classification: G34, M41
Suggested Citation: Suggested Citation