The Effects of Information Acquisition on Mergers and Acquisitions: Evidence from SEC EDGAR Web Traffic

63 Pages Posted: 2 Jul 2021 Last revised: 15 Sep 2022

Date Written: September 14, 2022

Abstract

I use SEC EDGAR web traffic as a proxy for information acquisition to study its effects on market reactions to mergers and acquisitions (M&As). Information acquisition about merging firms, industry rivals, and supply-chain firms enhances market informativeness about merger operating synergies. The effects are more pronounced among M&As with more institutional downloads and higher institutional trading activity. Furthermore, information acquisition about merging firms improves the market’s assessment of financial synergies. In addition, non-deal firms with greater information acquisition activity experience an increase in subsequent takeover probability. Overall, this paper demonstrates that information acquisition improves the market’s assessment of value creation in M&As.

Keywords: information acquisition, stock market reaction, market efficiency, mergers and acquisitions

JEL Classification: G14, D81, G34

Suggested Citation

Wang, Xiaoyu, The Effects of Information Acquisition on Mergers and Acquisitions: Evidence from SEC EDGAR Web Traffic (September 14, 2022). Available at SSRN: https://ssrn.com/abstract=3870845 or http://dx.doi.org/10.2139/ssrn.3870845

Xiaoyu Wang (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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