The Conversation: How merger optimism feeds investors a comforting tale of bumper earnings

It pays to be optimistic if you’re a company swallowing up another firm in a stock-based acquisition, according to a study co-authored by Amir Amel-Zadeh, University Lecturer in Finance at Cambridge Judge Business School. Amir analysed nearly 500 of the biggest US mergers between 1990 and 2007, and found that forecasts at the time of the deal were regularly over-optimistic.

Read the full article [theconversation.com]