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Investor Relations Role in Merger and Acquisition Activity

Kate Upton ()
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Kate Upton: 2075 Campus Box, Elon, NC 27277, USA

Quarterly Journal of Finance (QJF), 2018, vol. 08, issue 02, 1-28

Abstract: Managers are increasingly likely to use investor relations (IR) specialists to communicate to their investors during takeover contests. This paper is the first to study the use of external IR firms and their relation to merger and acquisition (M&A) deal characteristics. Targets that employ IR exhibit increased deal premiums, increases in the time to resolution, and a lower likelihood of deal completion, which may be associated with an IR firm’s media campaign and efforts to delay or prevent a deal. Bidders who utilize IR resources have deals that are more likely to be completed, which likely reflects their ability to educate investors.

Keywords: Mergers; acquisitions; investor relations (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1142/S2010139218500064

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