 An empirical examination of forecast disclosure by bidding companiesOpen Access publications from Research Repository, University College Dublin Abstract: This paper examines voluntary disclosure of profit forecasts by bidding companies during takeovers. Disclosure is examined from two perspectives: (i) factors influencing disclosure and (ii) the influence of good news and bad news on disclosure. Takeover documents published during 701 takeover bids for public companies listed on the London Stock Exchange in the period 1988 to 1992 were examined. Two variables accounted for almost all the influences on disclosure of forecasts: bid horizon and type of bid. Probability of forecast disclosure was greater the shorter the bid horizon and during contested bids. In addition, there was some evidence that the nature of the purchase consideration offered by the bidder (cash or paper) and the industry of the bidder influenced disclosure. Disclosure was significantly more likely in paper bids and in the durable goods industry. Forecasts were more likely to be disclosed when firms had good news to report. Keywords: Voluntary disclosure; Profit forecasts; Takeovers; Bidders; Disclosure of information; Consolidation and merger of corporations; Corporation reports; Business communication; Corporate profits--Forecasting (search for similar items in EconPapers) Published in: Accounting and Business Research, 30(3) 2000 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rru:oapubs:10197/2911 Access Statistics for this paper More papers in Open Access publications from Research Repository, University College Dublin |
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