We examine the determinants and stock price impact of voluntary managerial synergy disclosures using hand-collected synergy announcements for M&A transactions between U.S. public companies over the period 1995-2008. We find that the synergy disclosure decision is positively influenced by deal complexity, and negatively influenced by proprietary costs. Once controlled for the endogeneity of the disclosure decision, synergy disclosures result in more favorable stock price reactions for the acquiring firm. Overall, our findings suggest that synergy disclosures are used as a signaling tool by acquirers likely to suffer from high asymmetric information
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