This research looks at the disclosure of profit forecasts during takeover bids.
Disclosure of profit forecasts during takeovers: Evidence from directors and advisors
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Takeovers are complex business phenomena, undertaken for a variety of strategic and financial objectives.
The progress and outcomes of takeover bids are heavily influenced by the behaviour and motivations of managers in bidding and target companies.
Motivations and behaviour vary depending on whether bids are friendly or not. This research investigates one aspect of managerial behaviour during takeover bids, that of disclosure of profit forecasts.
As forecast disclosure is largely unregulated in the UK, this can provide valuable insights into managerial voluntary disclosure decisions. This in turn may be helpful in assisting policy makers to develop regulations governing disclosure of forecasts.