Voluntary Disclosure Timing and Market Attention around Mergers and Acquisitions

Abstract

The study investigates the disclosure timing strategy of acquiring firms around mergers and acquisitions (M&A). We find that management strategically chooses the timing in announcing different events during the M&A process. Firms are more likely to announce their M&A plans on Mondays than on other weekdays to attract investor attention. Management strategically chooses the timing for the M&A resolutions depending on the nature of M&A resolutions and the market favorability of the proposed transactions. Investor sentiment does not significantly affect the management strategic disclosure timing activities in the M&A process.