Joint Research Seminar of Accounting and Finance Department and Center for Scientific Computing and Data Science Research
The Department of Accounting & Finance and Center for Scientific Computing and Data Science Research announce the following research seminar.
Speaker: Associate Professor of Finance Daniel Greene (Clemson University)
Title: Better Than a Coin Flip? Merger Success and Artificial Intelligence Models
Date: Friday, February 27, 2026
Time: 9:30 -10:45 AM
Location: via Zoom Meeting
Meeting ID: 438 755 1509
Abstract: This paper investigates whether and how artificial intelligence (AI) can improve merger outcomes. We find that both machine learning models and large language models aid in deal selection and increase aggregate shareholder wealth during an out-of-sample period. However, gains are modest and the models reject many value-increasing deals. Large language models are helpful in identifying overpayment for targets and thus can assist in avoiding a "winner's curse" which drives down acquirer returns. Machine learning models are helpful in screening deals with extreme good or bad outcomes for shareholders, allowing firms to mitigate downside risk in mergers and counteract managerial biases.
For additional information, please contact Prof. Hongkang Xu or Prof. Donghui Yan
Zoom
Hongkang Xu
5089999187
hxu5@umassd.edu