The Impact of Investors’ Surprise Emotion on Post-M&A Performance : A Social Media Analytics Approach

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

5 Scopus Citations
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Detail(s)

Original languageEnglish
Title of host publicationInternational Conference on Information Systems 2019 Proceedings
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683197
Publication statusPublished - Dec 2019

Publication series

NameInternational Conference on Information Systems, ICIS
PublisherAssociation for Information Systems

Conference

Title40th International Conference on Information Systems (ICIS 2019)
LocationInternationales Congress Center München (ICM)
PlaceGermany
CityMunich
Period15 - 18 December 2019

Abstract

Previous studies showed that investors drew on management perception of the synergetic potential to make better investment decisions. In the context of mergers and acquisitions (M&A), our research reveals that investors also gain insights from the “wisdom of crowds” on social media. We investigate whether investors’ surprise emotion, as mined from their social postings on Twitter, exerts a significant effect on their subsequent decision-making following M&A announcements. Empirical results demonstrate that investors’ surprise emotion has a significantly negative effect on firms’ post-M&A stock returns. Such a finding facilitates investors’ subsequent investment decision-making based on peers’ early emotional responses on social media. Furthermore, we find evidence that investors also rely on additional information to estimate the reliability of such “wisdom of crowds” through two positive moderators such as investors’ social media involvement and the relative size of M&A deal. The proposed methodology helps managers evaluate the synergetic potentials of M&A deals beforehand.

Research Area(s)

  • Investors’ emotions, social media analytics, post-M&A performance, financial technology

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

The Impact of Investors’ Surprise Emotion on Post-M&A Performance: A Social Media Analytics Approach. / Wang, Qiping; Lau, Raymond.
International Conference on Information Systems 2019 Proceedings. Association for Information Systems, 2019. (International Conference on Information Systems, ICIS).

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review