A Research On The Anchoring Effect Of The Earnings Of The Listed Company's M&A Announcement Period

In recent years,M & A has always been a heated discussion among researchers in the field of finance and management science.The reason for this is that for an enterprise,it can serve as an important means of optimizing the allocation of resources and promoting the external growth of an enterprise.In particular,during the issuance of the M & A announcement,the investors' response to the announcements and the influencing factors have attracted the attentions of the researchers.And under the background of financial crisis,modem financial theory,which is based on the assumptions of rational individual and efficiency market,is doubted by many scholars.Therefore,this paper attempts to study the behavioral bias of investors during M & A announcement from the perspective of behavioral finance.Behavioral finance studies various psychological biases in financial markets,including overconfidence,disposition effects and anchoring effects.When people evaluate an event,they are influenced by certain specific values,which are used as reference values and give them too much attention,just as anchors constrain people to make decisions.In everyday life and even financial and economic phenomena have demonstrated the anchoring effect.Because,in the securities market,it is difficult for investors to know exactly the intrinsic value of the stock.In the case of large information uncertainty,investors can only base their prices on past prices or other comparable prices,and these prices serve as anchor values.Put another way,the anchor value is similar to the "sticky price" in macroeconomics,allowing people to make a small adjustment around the "sticky price".It has been studied to examine the influences of investors on the psychological factors such as overconfidence,disposition effect and banker's mood in M & A announcement,and does not involve the anchoring effect.Therefore,based on the theories and literatures of anchoring effect,this paper first puts forward the hypothesis based on the theory of anchoring effect and anchoring hypothesis.Then,I choose 265 M&A corporate as the research sample,the research variables are obtained by using event research method,And then use the independent sample t test,multiple regression method to explore whether there are anchoring effect and anchoring effect of the influencing factors,and finally to observe the whether anchoring effect to be amended in the long-term through the BHAR method.Through the study,this paper found that acquirers earn lower announcement period returns when their pre-announcement stock prices are well near their 52-week highs.That is,the anchoring effect.And the anchoring effect is not explained by the BM effect and other psychological biases.The results of the verification of the anchor hypothesis show that the higher the uncertainty of the acquirers informations,the stronger the anchoring effect is.Finally,the anchoring effect is corrected in the long term,and the short-term profit pattern is not continued in the long run.