The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune
Filipovic, Zoran; Wagner, Alexander F. (2022), The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune, WHU – Otto Beisheim School of Management Research Seminars, 2022-09, Vallendar, Allemagne
TypeCommunication / Conférence
External document linkhttps://dx.doi.org/10.2139/ssrn.3330623
Conference titleWHU – Otto Beisheim School of Management Research Seminars
MetadataShow full item record
Dauphine Recherches en Management [DRM]
Wagner, Alexander F.
Center for Economic Policy Research [CEPR]
Abstract (EN)Mergers and acquisitions are often motivated by the intention of creating value from intangible assets. We develop a novel word list of intangibles and apply it to takeover announcements. The value of these deals to the acquirer, as shown by abnormal announcement returns, is questionable: One standard deviation more in intangibles talk lowers returns by 0.50 percentage points. Agency problems explain little of these results. Rather, the cross-section of announcement returns, payment mode choices, and insider trades suggest that intangibles talk reflects managerial overoptimism. In sum, takeover announcements reveal important information regarding the quality of deals.
Subjects / KeywordsCorporate announcements; intangible assets; intangibles talk; mergers and acquisitions; takeovers; textual analysis
Showing items related by title and author.