City Research Online

Abstract

Taking advantage of the implementation of the 2003 European Commission (EC) directive on financial reporting, we explore the impact of mandatory financial disclosure on mergers and acquisitions (M&A). We find robust evidence that the number (and volume) of private firms becoming an M&A target increases with mandatory disclosure. The analyses of cross-industry differences, deal-level data, and post-deal performance indicate that financial disclosure increases M&A activity by reducing information frictions in the market for corporate control.

Publication Type:	Article
Additional Information:	This is a pre-copyedited, author-produced version of an article accepted for publication in The Review of Financial Studies following peer review. The version of record Ortiz, M., Peter, C. D., Urzúa, F. & Volpin, P. (2023). Mandatory Financial Disclosure and M&A Activity. The Review of Financial Studies, available online at: https://doi.org/10.1093/rfs/hhad052
Publisher Keywords:	financial disclosure; mergers and acquisitions; private firms
Subjects:	H Social Sciences > HG Finance
Departments:	Bayes Business School > Finance
SWORD Depositor:	Symplectic Administrator

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