Mergers Under the Microscope
UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance
Topic: Mergers Under the Microscope: Analyzing Conference Call Transcripts
Speaker: Fangyuan Ma, Peking University
Abstract: About half of all merger deals between public US acquirers and targets involve a conference call within two days of the deal announcement, ostensibly to communicate information to both acquirer and target shareholders, garner voting support, and mitigate legal liability. Calls are associated with positive market reactions and a higher likelihood of deal completion. However, for public targets, only the latter result holds after correcting for endogeneity. Using a probabilistic topic modelling approach, we identify 20 highly interpretable topics as prevalent in the presentations and discussions recorded in the transcripts. The topic distribution of these calls is significantly associated with target characteristics (e.g., whether the target is a private or a public firm), the method of payment, and acquirer characteristics (e.g., governance). The importance of several topics is associated with significant abnormal returns on deal announcement, and with deal completion likelihood.
Moderator: Jing Xu, University of Technology Sydney
Date: Wednesday, 17th February 2021
Time: 12-1 pm (Australian Eastern Daylight Time)
Venue: This is on online Zoom webinar.
Seminar protocols:
- The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
- There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
- Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.
Co-ordinator: Harry Scheule
Enquiries: Duncan Ford