IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v32y2025i9p1226-1232.html
   My bibliography  Save this article

Information transmission effect of forward-looking text: evidence from mergers and acquisitions report of Chinese listed firms

Author

Listed:
  • Yan Zhao
  • Danmei Li
  • Jialan Huang
  • Libin Zhao

Abstract

This paper examines the transmission effect of forward-looking text information in M&A announcement reports. We find that there is a significant positive relationship between forward-looking text information in M&A announcement reports and short-term cumulative abnormal returns (CAR). After a series of robustness tests, the conclusion remains unchanged. Further study finds that the positive relationship is more significant in firms with low-quality internal control and high levels of accrued earnings management. Overall, the result enriches the research literature on the economic consequences of text information disclosure. At the same time, it also provides an empirical basis for regulatory departments to improve the text information disclosure system of mergers and acquisitions.

Suggested Citation

  • Yan Zhao & Danmei Li & Jialan Huang & Libin Zhao, 2025. "Information transmission effect of forward-looking text: evidence from mergers and acquisitions report of Chinese listed firms," Applied Economics Letters, Taylor & Francis Journals, vol. 32(9), pages 1226-1232, May.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:9:p:1226-1232
    DOI: 10.1080/13504851.2024.2302881
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2024.2302881
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2024.2302881?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:32:y:2025:i:9:p:1226-1232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.