Earticle

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

Abstract
 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

키워드

저자

• Jin Q Jeon [ Dongguk Business School Dongguk University, Seoul, South Korea ]
• Juyoun Ryoo [ Dongguk Business School Dongguk University, Seoul, South Korea ]
• Cheolwoo Lee [ College of Business Ferris State University, Big Rapids, MI 49307, USA ]

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

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• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330