Macroeconomic news and acquirer returns in M&As: The impact of investor alertness

Leonidas Barbopoulos, Samer Adra, Anthony Saunders

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

We investigate the extent to which the scheduled release of macroeconomic indicators affects acquirer’s value in Mergers and Acquisitions (M&A). We find that M&As announced on days of the release of key macroeconomic indicators (i.e. indicator days) realize higher announcement period risk-adjusted returns compared to counterparts announced on non-indicator days. This positive wealth effect is due to the higher market attention on indicator release dates, which is particularly relevant for smaller M&As that tend to have low degrees of investor scrutiny. The results hold after addressing self-selection bias concerns. We also find that firms that announce M&As on indicator days are more likely to “listen” to the market’s feedback.
Original languageEnglish
Pages (from-to)1-51
Number of pages51
JournalJournal of Corporate Finance
Early online date8 Feb 2020
Publication statusPublished - Oct 2020

Keywords / Materials (for Non-textual outputs)

  • macroeconomic indicators
  • investor attention
  • mergers and acquisitions (M&As)
  • small deals
  • risk-adjusted returns
  • buy-and-hold abnormal returns


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