Performance commitments have become an important means of credit protection in the M&A process and can provide good expectations for the counterparties to the transaction. However, due to information asymmetry, performance commitments sometimes lead to the transmission of misinformation affecting stock pricing efficiency. And stock pricing efficiency is of great significance for capital market stability. Existing research theories have less research on the impact of performance commitment on stock pricing efficiency. Therefore, in this paper, stock pricing efficiency is calculated by using rolling regression and 20 pharmaceutical industry companies with mergers and acquisitions and restructuring with performance commitments from 2018-2023 are studied and analyzed using a graphical method. It is found that performance commitments have the effect of first decreasing and then recovering on the stock pricing efficiency of the company in the short term, while in the long term, it reduces the stock pricing efficiency of the company.
No takes yet. Share an insight, caveat, or question.
Wang et al. (2024) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: