Voluntary disclosure of profit forecasts by target companies in takeover bids

Niamh Brennan ()

Open Access publications from Research Repository, University College Dublin

Abstract: This paper examines factors influencing voluntary forecast disclosure by target companies, whether good/bad news forecasts are disclosed and the influence of forecasts on the outcome of hostile bids. Disclosure was significantly more likely during contested bids. In agreed bids, probability of forecast disclosure was greater the shorter the bid horizon. In contested bids, forecasts were more likely where there were large block shareholdings, for larger targets and for targets in the capital goods industry. There was a clear tendency to disclose good news forecasts. A significant positive association between forecast disclosure and increase in offer price was found.

Keywords: Voluntary disclosure; Forecasts; Target companies; Takeover defences; Profit--Forecasting; Disclosure of information; Consolidation and merger of corporations (search for similar items in EconPapers)
Pages: 35 pages
Date: 1999-09
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Citations: View citations in EconPapers (23)

Published in: Journal of Business Finance & Accounting, 26(7/8) 1999-09

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http://hdl.handle.net/10197/2922 Open Access version, 1999 (application/pdf)

Related works:
Journal Article: Voluntary Disclosure of Profit Forecasts by Target Companies in Takeover Bids (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:rru:oapubs:10197/2922

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