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The impact of weather-induced moods on M&A performance

Tunyi, A. and Machokoto, M. (2021) The impact of weather-induced moods on M&A performance. Economics Letters. 207 0165-1765.

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Tunyi_and_Machokoto_2021_Economics_Letters_The_impact_of_weather_induced_moods_on_M_A_performance.pdf - Accepted Version
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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, A. and Machokoto, M.
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:
10.1016/j.econlet.2021.110011
ISSN:
0165-1765
Status:
Published / Disseminated
Refereed:
Yes
Related URLs:
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