‘Know when to fold 'em’: Policy uncertainty and acquisition abandonment

IF 3.1 4区管理学 Q2 BUSINESS, FINANCE

Accounting and Finance Pub Date : 2023-10-15 DOI:10.1111/acfi.13179

Andrew Ferguson, Cecilia Wei Hu, Peter Lam

引用次数: 0

Abstract

Abstract This study investigates how policy uncertainty affects the acquisition process during the post‐announcement period. Utilising a sample of Australian mining project acquisitions over 1998–2017, we find that rising policy uncertainty after initial acquisition announcements is associated with delays in deal completion. In addition, prolonged high policy uncertainty plays an important role in triggering acquisition abandonment. Further, the stock market reacts less negatively to deal abandonment decisions made amid protracted policy uncertainty, and such reactions are associated with managers' explanations for terminating the deals. Overall, our findings highlight the importance of policy uncertainty as a ‘deal‐breaker’ in acquisitions.

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“知道何时放弃”:政策不确定性和收购放弃

摘要本研究探讨了政策不确定性如何影响公告后时期的收购过程。利用1998-2017年澳大利亚矿业项目收购的样本，我们发现，在最初的收购公告后，政策不确定性的上升与交易完成的延迟有关。此外，长期的高政策不确定性在引发收购放弃方面起着重要作用。此外，股市对在长期政策不确定性下做出的放弃交易决定的负面反应较小，这种反应与管理者对终止交易的解释有关。总的来说，我们的研究结果强调了政策不确定性在收购中作为“交易破坏者”的重要性。

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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来源期刊

Accounting and Finance BUSINESS, FINANCE-

CiteScore

5.10

自引率

7.70%

发文量

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