Our objective is to determine whether firms’ presence on social media improves the decision-making process inmergers and acquisitions (M&As), and thus the quality and performance of the transaction. Based on a sample of309 domestic mergers carried out by Canadian companies between 2012 and 2016, the empirical evidencestrongly supports our hypothesis as we find that the active presence of target firms on social media enhances thelikelihood of M&A completion. In addition, M&As carried out by firms active on social media are also morelikely to create value. These findings suggest that information posted on social media helps firms identify thebest partnerships, i.e., those target firms with which the acquiring firms will be able to work in synergy.
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