A team of researchers from WHU – Otto Beisheim School of Management has received the AFFI 2017 Best Conference Paper Prize. The prize was awarded to Professor Dr. Nihat Aktas, Chair of Mergers and Acquisitions, Professor Dr. B. Burcin Yurtoglu, Chair of Corporate Finance and Doctoral student Guosong Xu for their paper entitled “"She is Mine": Determinants and Value Effects of Early Announcements in Takeovers".
The prize-winning paper explores the reasons why some bidders voluntarily announce a merger negotiation before a definitive agreement has been reached. The researchers propose that an early announcement by a bidder signals high transaction synergies, so target shareholders perceive such transactions as value creating and render support to the bidder to improve success rates. The paper adds to the understanding of how companies are sold and in particular how private merger negotiations actually take place.
The award is endowed with 2,000 Euros and was presented to the winners during the 2017 AFFI Conference which was held in Valence, France from May 31st to June 2nd, 2017.