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Ivaldi, Marc; Motis, Jrissy - C.E.P.R. Discussion Papers - 2007

structural approach to infer acquirers’ gains from merging by interpreting a merger as an auction. Using nonparametric methods …

Persistent link: https://www.econbiz.de/10005656211

Demographic Trends, the Dividend-Price Ratio and the Predictability of Long-Run Stock Market Returns

Favero, Carlo A.; Gozluklu, Arie; Tamoni, Andrea - C.E.P.R. Discussion Papers - 2010

This paper documents the existence of a slowly evolving trend in the dividend-price ratio, dpt, determined by a demographic variable, MY: the middle-aged to young ratio. Deviations of dpt from this long-run component explain transitory but persistent fluctuations in stock market returns. The...

Persistent link: https://www.econbiz.de/10008468657

Industry Concentration and Welfare - On the Use of Stock Market Evidence from Horizontal Mergers

Fridolfsson, Sven-Olof; Stennek, Johan - C.E.P.R. Discussion Papers - 2006

possible reconciliation. It is demonstrated that anticompetitive mergers may reduce competitors' share prices, if the merger …

Persistent link: https://www.econbiz.de/10005497962

Distressed Acquisitions

Meier, Jean-Marie A.; Servaes, Henri - C.E.P.R. Discussion Papers - 2014

Firms that buy distressed and bankrupt companies or some of these companies’ assets earn excess returns that are at least 1.6 percentage points higher than when they make regular acquisitions. These returns come at the expense of the target firm’s shareholders, while overall wealth gains are...

Persistent link: https://www.econbiz.de/10011083439

Strategic News Releases in Equity Vesting Months

Edmans, Alex; Goncalves-Pinto, Luis; Wang, Yanbo; Xu, Moqi - C.E.P.R. Discussion Papers - 2014

We show that CEOs strategically time corporate news releases to coincide with months in which their equity vests. These vesting months are determined by equity grants made several years prior, and thus unlikely driven by the current information environment. CEOs reallocate news into vesting...

Persistent link: https://www.econbiz.de/10011084526

Feedback Effects and the Limits to Arbitrage

Edmans, Alex; Goldstein, Itay; Jiang, Wei - C.E.P.R. Discussion Papers - 2014

This paper identifies a limit to arbitrage that arises because firm value is endogenous to the exploitation of arbitrage. Trading on private information reveals this information to managers and improves their real decisions, enhancing fundamental value. While this feedback effect increases the...

Persistent link: https://www.econbiz.de/10011084724

Tips and Tells from Managers: How Analysts and the Market Read Between the Lines of Conference Calls

Druz, Marina; Wagner, Alexander F; Zeckhauser, Richard - C.E.P.R. Discussion Papers - 2015

Stock prices react significantly to the tone (negativity of words) managers use on earnings conference calls. This reaction reflects reasonably rational use of information. “Tone surprise” -- the residual when negativity in managerial tone is regressed on the firm’s recent economic...

Persistent link: https://www.econbiz.de/10011145406

The Impact of Horizontal Mergers on Rivals: Gains to Being Left Outside a Merger

Clougherty, Joseph A.; Duso, Tomaso - C.E.P.R. Discussion Papers - 2008

It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue … that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert … merger announcement date. Further, we find that the stock reaction of rivals to merger events is not sensitive to merger …

Persistent link: https://www.econbiz.de/10005123810

Bottom-Up Corporate Governance

Landier, Augustin; Sraer, David; Thesmar, David - C.E.P.R. Discussion Papers - 2006

In many instances, 'independently-minded' top-ranking executives can impose strong discipline on their CEO, even though they are formally under his authority. This paper argues that the use of such a disciplining mechanism is a key feature of good corporate governance. We provide robust...

Persistent link: https://www.econbiz.de/10005136453

On the Real Effects of Bank Bailouts: Micro-Evidence from Japan

Giannetti, Mariassunta; Simonov, Andrei - C.E.P.R. Discussion Papers - 2009

Exploiting the Japanese banking crisis as a laboratory, we provide firm-level evidence on the real effects of bank bailouts. Government recapitalizations result in positive abnormal returns for the clients of recapitalized banks. After recapitalizations, banks extend larger loans to their...

Persistent link: https://www.econbiz.de/10005014571