TY  - UNPD
A1  - Andres, Christian
A1  - Bazhutov, Dmitry
A1  - Cumming, Douglas J.
A1  - Limbach, Peter
T1  - Does speculative news hurt productivity? Evidence from takeover rumors
N2  - Speculative news on corporate takeovers may hurt productivity because uncertainty and threat of job loss cause anxiety, distraction, and reduced collaboration and morale among employees and managers. Using a panel of OECD-headquartered firms, we show that firm productivity temporarily declines upon announcements of speculative takeover rumors that do not materialize. This productivity dip is more pronounced for targets and for firms in countries with weaker employee rights and less long-term orientation. Abnormal stock returns mirror these results. The evidence fosters our understanding of potential real effects of speculative financial news and the costs of takeover threats.
T3  - CFS working paper series - No. 701 
KW  - Distraction
KW  - Employee commitment
KW  - Employee rights
KW  - Fear of job loss
KW  - Productivity
KW  - Shareholder wealth
KW  - Takeover speculation
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/68995
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-689951
UR  - https://ssrn.com/abstract=4365129
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -