Celebrating Success – Dr Zhonghao Jiang

Congratulations to Dr Zhonghao Jiang and his co authors Yukun Shi and Lu Xing whose paper “Social Connectedness and Cross-Border Mergers and Acquisitions” has been accepted for publication in the Journal of Empirical Finance.

Abstract: We investigate the role of social connectedness in cross-border mergers and acquisitions (M&As) using the Facebook social connectedness index. We show that stronger social connectedness between countries leads to higher announcement returns for acquirers in cross-border M&As. This effect is attributed to improved information dissemination, which reduces target premiums, increases deal completion likelihood, and supports acquirers to achieve long-term success. Furthermore, social connectedness increases the frequency and dollar value of cross-border M&As between countries. This relation is weaker for countries in the same customs union, but stronger in the presence of greater political disagreement or significant time zone differences. Extending our analysis to domestic M&As in the U.S., we find that social connectedness between the headquarters’ cities of acquirers and targets improves acquirers’ announcement returns.

https://doi.org/10.1016/j.jempfin.2025.101582.