#2363. Can information asymmetry explain both the post-merger value and the announcement discount in M&As?

November 2026publication date
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4 total number of authors per manuscript5500 $

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Journal’s subject area:
Finance;
Economics and Econometrics;
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Abstract:
The article analyzes the possibilities of explaining information asymmetry for the problem of the relationship between ad discount and post-merger valuation in M&A. The study is based on an analysis of the features of information asymmetry for a period of three years after the merger. The results of the analysis show that the ad discount is proportional to the increase in information inequality around the ad date. Moreover, mergers and acquisitions cause a temporary surge in information inequality. Our results are robust against several variations in specifications and assumptions, including the Heckman two-stage self-selection model.
Keywords:
Corporate finance; Factor analysis; Information asymmetry; Mergers and acquisitions

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