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    Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 24/11/2019, available online:  https://www.tandfonline.com/doi/full/10.1080/1351847X.2019.1694959

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10-K Filing length and M&A returns

Research output: Contribution to journalJournal articlepeer-review

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10-K Filing length and M&A returns. / Chircop, Justin; Tarsalewska, Monika.

In: European Journal of Finance, Vol. 26, No. 6, 29.02.2020, p. 532-553.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Chircop, J & Tarsalewska, M 2020, '10-K Filing length and M&A returns', European Journal of Finance, vol. 26, no. 6, pp. 532-553. https://doi.org/10.1080/1351847X.2019.1694959

APA

Chircop, J., & Tarsalewska, M. (2020). 10-K Filing length and M&A returns. European Journal of Finance, 26(6), 532-553. https://doi.org/10.1080/1351847X.2019.1694959

Vancouver

Chircop J, Tarsalewska M. 10-K Filing length and M&A returns. European Journal of Finance. 2020 Feb 29;26(6):532-553. https://doi.org/10.1080/1351847X.2019.1694959

Author

Chircop, Justin ; Tarsalewska, Monika. / 10-K Filing length and M&A returns. In: European Journal of Finance. 2020 ; Vol. 26, No. 6. pp. 532-553.

Bibtex

@article{fe280e167d434a4b8fefde6ab1054a3e,
title = "10-K Filing length and M&A returns",
abstract = "This study examines the association between 10-K filing length and M&A returns. We posit that 10-K filing length influences shareholder information acquisition and processing costs. Longer 10-K filings reduce information acquisition costs by making more information about the target available to the shareholder, but may increase information processing costs by increasing the difficulty of extracting that information. Which effect dominates ultimately determines the association between 10-K filing length and M&A returns. We find that 10-K filing length is positively related to M&A returns, suggesting that the reduction in information acquisition costs dominates the increase in information processing costs. This relation is stronger when the acquirer has limited access to private information about the target, and when 10-K filings contain text denoting risk. The relation is weaker when 10-K filings contain complex text and financial statements exhibiting high accounting quality.",
keywords = "10-K filing length, mergers and acquisitions, information acquisition costs, information processing costs, market returns",
author = "Justin Chircop and Monika Tarsalewska",
note = "This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 24/11/2019, available online:  https://www.tandfonline.com/doi/full/10.1080/1351847X.2019.1694959",
year = "2020",
month = feb,
day = "29",
doi = "10.1080/1351847X.2019.1694959",
language = "English",
volume = "26",
pages = "532--553",
journal = "European Journal of Finance",
issn = "1351-847X",
publisher = "Routledge",
number = "6",

}

RIS

TY - JOUR

T1 - 10-K Filing length and M&A returns

AU - Chircop, Justin

AU - Tarsalewska, Monika

N1 - This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 24/11/2019, available online:  https://www.tandfonline.com/doi/full/10.1080/1351847X.2019.1694959

PY - 2020/2/29

Y1 - 2020/2/29

N2 - This study examines the association between 10-K filing length and M&A returns. We posit that 10-K filing length influences shareholder information acquisition and processing costs. Longer 10-K filings reduce information acquisition costs by making more information about the target available to the shareholder, but may increase information processing costs by increasing the difficulty of extracting that information. Which effect dominates ultimately determines the association between 10-K filing length and M&A returns. We find that 10-K filing length is positively related to M&A returns, suggesting that the reduction in information acquisition costs dominates the increase in information processing costs. This relation is stronger when the acquirer has limited access to private information about the target, and when 10-K filings contain text denoting risk. The relation is weaker when 10-K filings contain complex text and financial statements exhibiting high accounting quality.

AB - This study examines the association between 10-K filing length and M&A returns. We posit that 10-K filing length influences shareholder information acquisition and processing costs. Longer 10-K filings reduce information acquisition costs by making more information about the target available to the shareholder, but may increase information processing costs by increasing the difficulty of extracting that information. Which effect dominates ultimately determines the association between 10-K filing length and M&A returns. We find that 10-K filing length is positively related to M&A returns, suggesting that the reduction in information acquisition costs dominates the increase in information processing costs. This relation is stronger when the acquirer has limited access to private information about the target, and when 10-K filings contain text denoting risk. The relation is weaker when 10-K filings contain complex text and financial statements exhibiting high accounting quality.

KW - 10-K filing length

KW - mergers and acquisitions

KW - information acquisition costs

KW - information processing costs

KW - market returns

U2 - 10.1080/1351847X.2019.1694959

DO - 10.1080/1351847X.2019.1694959

M3 - Journal article

VL - 26

SP - 532

EP - 553

JO - European Journal of Finance

JF - European Journal of Finance

SN - 1351-847X

IS - 6

ER -