Firms' delayed replies and investor confidence: Evidence from M&A comment letters in China

This study examines the impact of firms' delayed responses to M & A comment letters on investor confidence. Using data from Internet stock message boards between 2015 and 2019 in China, we find that delayed responses by listed companies have a significant adverse effect on investor confidence, and this effect is more pronounced in firms with lower information transparency. Further, we examine firms' stock market performance after the stock trading resumption date and find that companies with delayed responses experience significantly lower cumulative abnormal returns.