The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune

Zoran Filipovic and Alexander Wagner
Additional contact information
Zoran Filipovic: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: 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. Deals presented with more "intangibles talk" complete more quickly. However, the value of these deals to the acquirer is questionable: One standard deviation more in intangibles talk results in 0.45 percentage points lower abnormal announcement returns of bidders. Agency problems explain little of these results. Instead, payment mode choices and insider trades suggest that intangibles talk reflects managerial overoptimism. Overall,takeover announcements can provide important information regarding the quality of deals.

Keywords: Corporate announcements; intangible assets; intangibles talk; mergers and acquisitions; textual analysis (search for similar items in EconPapers)
Date: 2019-10
Note: View the original document on HAL open archive server: https://hal.science/hal-04079915v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in 2019 Financial Management Association Annual Meeting, Oct 2019, New Orleans, United States

Downloads: (external link)
https://hal.science/hal-04079915v1/document (application/pdf)

Related works:
Working Paper: The intangibles song in takeover announcements: Good tempo, hollow tune (2023)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2023)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2022)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2022)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2021)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2021)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2019)
Working Paper: The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04079915

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().