Enter the Research Conversation with Hanyong Chung
Does coverage by analysts during the pre-merger and acquisition announcement period affect analysts’ post-M&A earnings forecast accuracy?
I predict an information advantage effect of analysts; the coverage on acquirer and/or target during the pre-M&A announcement period helps analysts to generate more accurate earnings forecasts on the post-M&A firm by utilizing the incremental value-relevant information of acquirer and/or target than the analysts who have covered neither. Furthermore, I expect a stronger information advantage effect when the acquirer and target are in the same industry or customer-supplier relationship.
This research is important especially to financial analysts, because it introduces a new determinant of analysts forecast accuracy, the coverage on the acquirer and/or target during the pre-M&A announcement period.
Area of Research
Seoul, South Korea
I like traveling (more than 20 countries around the world) and watching detective/thriller movies.