The JOBS Act and Mergers and Acquisitions

43 Pages Posted: 11 Dec 2019

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Ming Liu

University of Macau - Faculty of Business Administration

Shu Zhang

Queen's University (Canada), Students

Date Written: November 22, 2019

Abstract

We examine how the Jumpstart Our Business Startup Act (JOBS Act) affect mergers and acquisitions. We find that U.S. private targets are valued higher after the JOBS Act relative to public targets acquired by US acquirers. The announcement returns of acquirers who acquired US private targets after the JOBS Act are lower. Consistent with the argument that the JOBS Act affects firms with higher disclosure costs more, we find that the effect is more pronounced for firms with higher disclosure costs.

Keywords: JOBS Act, Private Target, Bargaining Power, IPO, Disclosure Cost

JEL Classification: G30, G32, G38

Suggested Citation

Chu, Yongqiang and Liu, Ming and Zhang, Shu, The JOBS Act and Mergers and Acquisitions (November 22, 2019). Available at SSRN: https://ssrn.com/abstract=3491994 or http://dx.doi.org/10.2139/ssrn.3491994

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

Ming Liu

University of Macau - Faculty of Business Administration ( email )

Macau

Shu Zhang

Queen's University (Canada), Students ( email )

Kingston
Canada

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