Tunyi, A. and Machokoto, M. (2021) The impact of weather-induced moods on M&A performance. Economics Letters. 207 0165-1765.
Tunyi_and_Machokoto_2021_Economics_Letters_The_impact_of_weather_induced_moods_on_M_A_performance (431kB) |
| Item Type: | Article |
|---|---|
| Abstract: | Unpleasant weather induces negative moods and, consequently, increases managerial risk aversion. We conjecture that this weather-induced risk aversion leads to better M&A performance by constraining managerial hubris, over-confidence and over-payment for targets. Using a large UK sample, we document robust and significant heterogeneity in M&A performance conditional on the weather. Specifically, UK acquirers earn significant positive CARs from deals announced in unpleasant weather but negative CARs otherwise. |
| Uncontrolled Keywords: | Economics and Econometrics, Finance |
| Creators: | Tunyi, Abongeh and Machokoto, Michael |
| Faculties, Divisions and Institutes: | Faculties > Faculty of Business & Law > Accounting & Finance |
| Date: | 1 October 2021 |
| Date Type: | Publication |
| Journal or Publication Title: | Economics Letters |
| Volume: | 207 |
| Number of Pages: | 19 |
| Language: | English |
| DOI: | https://doi.org/10.1016/j.econlet.2021.110011 |
| ISSN: | 0165-1765 |
| Status: | Published / Disseminated |
| Refereed: | Yes |
| Related URLs: | |
| URI: | http://nectar.northampton.ac.uk/id/eprint/14976 |
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