The Impact of M&A Delistings on the Information Environment of Industry Peer Firms

Anna Bergman Brown, Donal Byard, Masako Darrough, Jangwon Suh
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Abstract

ABSTRACT This study documents that M&A delistings are associated with a deterioration in the quality of analysts’ information environment for industry peer firms, measured by an increase in analysts’ absolute forecast errors and dispersion. This effect persists for six quarters and is larger when the delisting target firm contributes relatively more to the industry information environment. Further, we find that, among analysts forecasting earnings for an industry peer firm, those who also followed the delisted target firm in the pre-M&A period experience a larger increase in their absolute forecast errors. A comparison based on public versus private target firms also suggests that the loss of target firms’ public disclosures plays a role in the deterioration in the quality of analysts’ information environment. In additional analyses, we find evidence consistent with this effect resulting from a deterioration in analysts’ ability to exploit across-firm information complementarities. JEL Classifications: G14; G18; G34; M40.
并购退市对同业企业信息环境的影响
摘要本研究通过分析人员的绝对预测误差和离散度的增加来衡量,证明并购A退市与分析师对行业同行公司信息环境质量的恶化有关。这种效应持续了六个季度,当退市目标公司对行业信息环境的贡献相对较大时,这种效应更大。此外,我们发现,在预测行业同行公司收益的分析师中,那些在并购前时期跟随退市目标公司的分析师的绝对预测误差增加更大。基于上市与非上市目标公司的比较也表明,目标公司公开披露的缺失在分析师信息环境质量恶化中发挥了作用。在进一步的分析中,我们发现了与这种效应一致的证据,这种效应是由于分析师利用跨公司信息互补性的能力下降造成的。JEL分类:G14;G18;G34;M40。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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