원문정보
초록
영어
In this paper, we use an event study approach and find that aggressive marketing activities of target firms prior to the M&A deal are not always compensated with greater premiums and favorable market reactions, which would represent the presence of a potential “window-dressing.” Further analysis shows that the positive association between marketing activities and deal performance is conditional on the change in institutional ownership prior to the deal, suggesting that institutional investors cherry-pick good targets with value-enhancing marketing activities. The results hold for both OLS and 2SLS after accounting for potential endogeneity. This paper contributes to the marketing-finance interface literature by providing more precise and direct evidence on how marketing strategies affect firm value.
목차
1. Introduction
2. Related Literature and Hypothesis Development
2.1.Related Literature
2.2. Hypothesis development
3. Data, Variable Descriptions, and Research Design
3.1.Data
3.2.Variable Descriptions
3.3.Research Design
4. Empirical Results
4.1.Summary Statistics
4.2.Determinants of Pre-merger Marketing Activities of Target Firms
4.3.Effect of Pre-merger Marketing Activities on Deal Premium
4.4.Effect of Marketing Activities on Market Reactions to Merger Announcements
5. Conclusions and Discussions
REFERENCES