The devil is in the detail? Investors’ mispricing of proxy voting outcomes on M&A deals

• Main Authors: Li, Lingwei, Zhang, Huai
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2021
• Subjects: Business::Finance; Marketing Efficiency; Mergers and Acquisitions
• Online Access: https://hdl.handle.net/10356/154550
• Institution: Nanyang Technological University

Shareholders’ approval rates on M&A deals are informative because they are predictive of the acquirer's post-merger operating performance. Since the passing of the deal is salient information while the specific approval rate is not, investors may misprice the detailed voting outcome due to...