No News is Good News! Media Coverage and Corporate Takeover Characteristics

71 Pages Posted: 27 Mar 2022 Last revised: 24 Aug 2022

See all articles by Narmin Nahidi

Narmin Nahidi

University of Exeter; ESC Clermont Business School

Stefan Hirth

Aarhus University; Danish Finance Institute

Date Written: May 13, 2021


The purpose of this study is to empirically examine the relation between a target firm’s media coverage (measured by degree of media coverage, positive and negative media coverage) and various takeover characteristics. We find that media coverage is negatively associated with the takeover premium. This holds for both positive and negative media coverage. Thus, no news is good news in terms of achieving a higher takeover premium. The method of payment shows an ambiguous relation with media coverage. All three measures of media coverage have a positive effect on the time of completion.

Keywords: Mergers and acquisitions; media coverage; premium; method of payment; time of completion; information asymmetry

JEL Classification: G34, G30, L82, D82

Suggested Citation

Nahidi, Narmin and Hirth, Stefan, No News is Good News! Media Coverage and Corporate Takeover Characteristics (May 13, 2021). Available at SSRN: or

Narmin Nahidi (Contact Author)

University of Exeter ( email )

Department of Accounting and Finance
Exeter, EX4 4ST
United Kingdom

ESC Clermont Business School ( email )

4 Bd Trudaine, Clermont-Ferrand
Clermont-Ferrand, 63000

Stefan Hirth

Aarhus University ( email )

Fuglesangs Allé 4
Aarhus V, 8210


Danish Finance Institute ( email )

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