Type

Journal Article

Authors

Niamh Brennan

Subjects

Business

Topics
bidders voluntary disclosure consolidation and merger of corporations disclosure of information corporate profits forecasting business communication takeovers corporation reports profit forecasts

An empirical examination of forecast disclosure by bidding companies (2000)

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.
Collections Ireland -> University College Dublin -> Business Research Collection
Ireland -> University College Dublin -> School of Business
Ireland -> University College Dublin -> College of Business

Full list of authors on original publication

Niamh Brennan

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Niamh Brennan
University College Dublin
Total Publications: 106