Mergers Under the Microscope: Analysing Conference Call Transcripts

Dasgupta, Sudipto; Harford, Jarrad; Ma, Fangyuan; Wang, Daisy; Xie, Haojun

doi:10.2139/ssrn.3528016

Cited by 3 publications

(5 citation statements)

References 11 publications

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“…ENDNOTES 1 A concurrent working paper by Rohrer (2017) examines the participation of institutional investors in M&A calls. A second concurrent working paper by Dasgupta et al (2020) examines the impact of M&A calls on deal completion and uses topical analysis to evaluate M&A call content. 2 For further evidence, we note that the level of uncertainty (% Uncertainty) in M&A calls is significantly higher than earnings calls in our comparison within Table 2.…”

Section: Orcidmentioning

confidence: 99%

“…Our paper is one of two papers, to the best of our knowledge, to analyze textual content of M&A calls and examine its impact on acquirer returns. A concurrent paper, Dasgupta et al (2020), uses a different textual analysis methodology (topic modeling), which similarly shows the importance of target/acquirer characteristics and deal payment method-related content in M&A calls. Their study also examines other M&A call-related outcomes including the decision to hold M&A calls, deal completion probability, and market reaction.…”

Section: Introductionmentioning

confidence: 99%

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What’s really in a deal? Evidence from textual analysis of M&A conference calls

Shohfi

Wang

2021

Rev Financ Econ

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Using a sample of 814 transcripts from 2011 to 2018, we examine information within merger and acquisition conference calls. Textual analysis reveals significant differences between the content of M&A call transcripts and both contemporaneous corporate press releases and prior earnings conference calls. We find participation of target executive types in M&A calls occurs more frequently in diversifying acquisitions and is related to payment choice consistent with promoting managerial sectorspecific skills and incentive alignment, respectively. Retention of participating target executives is associated with a negative market reaction. We also identify a negative relation between textual sentiment and market reaction consistent with a response to higher levels of information asymmetry. Greater quantitative information, however, is positively related to the market reaction of M&A calls. We develop targeted M&A motive dictionaries to identify financial and strategic content within call transcripts.Consistent with prior literature on merger motivation, deals with more finance (strategy)-oriented words have a higher (lower) market reaction. Overall, our resultsshow that deal-related textual analysis explains a highly significant and economically important component of gains/losses to acquirers.

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Section: Orcidmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

What’s really in a deal? Evidence from textual analysis of M&A conference calls

Shohfi

Wang

2021

Rev Financ Econ

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“…M&A Conference Calls Financial reports and conference calls have been shown to have a correlation with the stock market and improve financial predictions (Bowen et al, 2001;Kogan et al, 2009). Studies have also been carried out specifically for M&A calls, showing their effect on the market (Dasgupta et al, 2020;Hu et al, 2018). However, there exists a gap in leveraging neural predictive modeling on using verbal and vocal cues pertaining to M&A calls for financial forecasting.…”

Section: Related Workmentioning

confidence: 99%

“…Studies have also been carried out specifically for M&A calls, showing their effect on the market (Dasgupta et al, 2020;Hu et al, 2018). However, there exists a gap in leveraging neural predictive modeling on using verbal and vocal cues pertaining to M&A calls for financial forecasting.…”

Section: Related Workmentioning

confidence: 99%

“…Mergers and Acquisitions (M&As) 1 conference calls are events preceding financial transactions involving two or more entities such that either one of the participant companies takes over the other(s) and establishes itself as the owner (termed as "acquisition") or when one company combines with another to become a joint entity (termed as "merger"). In these M&A conference calls, the participating companies' management makes a presentation to the call participants, such as market analysts, media personnel, and other stakeholders, explaining the rationale for the deal and possible roadblocks to deal completion (Dasgupta et al, 2020). Following the presentation segment, there is a Q&A segment in which the call participants ask questions to which the management responds.…”

Section: Introductionmentioning

confidence: 99%

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Multimodal Multi-Speaker Merger & Acquisition Financial Modeling: A New Task, Dataset, and Neural Baselines

Sawhney¹,

Goyal²,

Goel³

et al. 2021

Proceedings of the 59th Annual Meeting of the Association for Computational Linguistics and the 11th International Joint Confer

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Risk prediction is an essential task in financial markets. Merger and Acquisition (M&A) calls provide key insights into the claims made by company executives about the restructuring of the financial firms. Extracting vocal and textual cues from M&A calls can help model the risk associated with such financial activities. To aid the analysis of M&A calls, we curate a dataset of conference call transcripts and their corresponding audio recordings for the time period ranging from 2016 to 2020. We introduce M3ANet, a baseline architecture that takes advantage of the multimodal multispeaker input to forecast the financial risk associated with the M&A calls. Empirical results prove that the task is challenging, with the proposed architecture performing marginally better than strong BERT-based baselines. We release the M3A dataset and benchmark models to motivate future research on this challenging problem domain.

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The Role of Corporate Culture in Bad Times: Evidence from the COVID-19 Pandemic

Liu

Mai

et al. 2020

SSRN Journal

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Mergers Under the Microscope: Analysing Conference Call Transcripts

Cited by 3 publications

References 11 publications

What’s really in a deal? Evidence from textual analysis of M&A conference calls

What’s really in a deal? Evidence from textual analysis of M&A conference calls

Multimodal Multi-Speaker Merger & Acquisition Financial Modeling: A New Task, Dataset, and Neural Baselines

The Role of Corporate Culture in Bad Times: Evidence from the COVID-19 Pandemic

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