Macroeconomic news and acquirer returns in M&As: the impact of investor alertness

Research output: Contribution to journalArticlepeer-review


External organisations

  • University of Edinburgh
  • New York University


We investigate the extent to which the scheduled release of macroeconomic indicators affects the acquirer’s value in Mergers and Acquisitions (M&As). We find that M&As announced on days of the release of key macroeconomic indicators (i.e. indicator days) realize higher announcement period risk-adjusted returns compared to counterparts announced on non-indicator days. The positive wealth effect is due to the higher market attention on indicator days, which is particularly relevant for smaller M&As that are not usually exposed to significant investor scrutiny. The results hold after addressing self-selection bias concerns. We also find that firms announcing M&As on indicator days are more likely to “listen” to the market’s feedback.


Original languageEnglish
JournalJournal of Corporate Finance
Early online date8 Feb 2020
Publication statusE-pub ahead of print - 8 Feb 2020


  • macroeconomic indicators, investor attention, mergers and acquisitions, small deals, risk-adjusted returns, buy-and-hold abnormal returns