Date of Degree
PhD (Doctor of Philosophy)
First Committee Member
Gleason, Cristi A.
Second Committee Member
Garfinkel, Jon A.
Third Committee Member
Melessa, Samuel J.
I study how the properties of management earnings forecasts change after a firm merges with or acquires another company. I find management is more likely to issue a forecast in a merger or an acquisition firm-year than in a non-M&A firm-year. Compared to forecasts issued by the firm in non-M&A periods, the first forecast issued after completing an M&A deal is less likely to be bundled with an earnings announcement and the forecast range is wider, although more likely to be optimistic than non-M&A forecasts. I find the increase in forecast range width and optimism persist in forecasts issued up to the end of the fiscal year but are not present in the initial forecast issued in the subsequent year. Finally, I find variation in M&A experience and M&A type influence management earnings forecast properties. Because prior studies of management forecasts often delete observations containing mergers and acquisitions or simply include the firm’s market-to-book, my study informs researchers about how the properties of management forecasts are impacted by the uncertainty from a merger or an acquisition.
Management Forecasting, Mergers and Acquisitions
viii, 52 pages
Includes bibliographical references (pages 49-52).
Copyright © 2017 Olivia Grace Huseman
Huseman, Olivia Grace. "Properties of management earnings forecasts following mergers and acquisitions." PhD (Doctor of Philosophy) thesis, University of Iowa, 2017.