Journal article 753 views
The impact of weather-induced moods on M&A performance
Tunyi Tunyi Abongeh 
,
Michael Machokoto
,
Michael Machokoto
Economics Letters, Volume: 207, Start page: 110011
Swansea University Author:
Tunyi Tunyi Abongeh
Full text not available from this repository: check for access using links below.
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 docu...
| Published in: | Economics Letters |
|---|---|
| ISSN: | 0165-1765 1873-7374 |
| Published: |
Elsevier BV
2021
|
| Online Access: |
Check full text
|
| URI: | https://cronfa.swan.ac.uk/Record/cronfa65104 |
| 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. |
|---|---|
| Keywords: |
M&A, Acquirers, Weather, Moods, Risk aversion, United Kingdom |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
110011 |