Abstract
Shareholders vote on proposed M&A deals. We show that the shareholder voting outcome is positively associated with the post-merger operating performance. We then test whether investors fully understand this relationship. We find that post-merger annual returns and earnings-announcement returns are significantly higher for acquirers receiving higher approval rates. Overall, our results are consistent with that the stock price fails to fully reflect the information in the shareholder voting outcome for the post-merger operating performance.
| Original language | English |
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| Title of host publication | 29th Asian Finance Association Annual Meeting |
| Place of Publication | online |
| Publisher | Asian Finance Association Annual Meeting |
| Pages | 1-36 |
| Edition | to be checked |
| Publication status | Published - 2017 |
| Event | 29th Asian Finance Association Annual Meeting, AsianFA 2017 - Seoul, Korea, Korea, Republic of Duration: 1 Jan 2017 → … http://www.asian-fa.org/activities-and-events/conferences/next-conference |
Conference
| Conference | 29th Asian Finance Association Annual Meeting, AsianFA 2017 |
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| Country/Territory | Korea, Republic of |
| Period | 1/01/17 → … |
| Other | 6-8 July 2017 |
| Internet address |