Elon professor researches how market sentiment impacts global and domestic mergers

Feng Dong, associate professor of finance in the Martha and Spencer Love Business School, has recently conducted a research study that explores how market sentiment influences the success of mergers and acquisitions.

The research, titled “The effect of sentiment on cross-border M&A performance”, aims to determine how shifts in market perception directly impact performance for mergers and acquisitions.

The article was published under Emerald Insight and presents data ranging from X metrics to macro-economic data. By combining various research outlets, the following key factors were found:

• Improved market moods made mergers inside a country successful; however when companies from differing countries merged, it led to higher uncertainty.
• Risk, specifically political risk, is observed to impact international transactions.
• Twitter analytics work to aid in determining whether the transaction will have a positive or negative outcome when predicting results.

The research works to bridge financial and institutional theory, showcasing how external factors can influence the result of a financial transaction.

Dong joined Elon University in 2014 and has a strong passion for financial teaching and application. Before joining Elon University, he taught as an assistant professor of finance at both Siena College and Old Dominion University.

As a CFA charter holder and FRM holder, Dong brings a deep understanding of both academic and daily finance to the classroom. His research focuses on behavioral finance, financial management, and asset pricing, with numerous publications in leading journals such as the Journal of Corporate Finance, International Business Review, and the Journal of Behavioral Finance.