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No News is News : Do Markets Underreact to Nothing?
Giglio, Stefano - 2013
after merger announcement, the passage of time is informative about the probability that the merger will ultimately complete …
Persistent link: https://www.econbiz.de/10013084725
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Levered Returns
Welch, Ivo - 2016
Do financial markets properly reflect leverage? Unlike Gomes and Schmid (2010) who examine this question with a structural approach (using long-term monthly stock characteristics), my paper examines it with a quasi-experimental approach (using short-term a discrete event). After a firm has...
Persistent link: https://www.econbiz.de/10012994892
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Acquiring Control in Emerging Markets : Evidence from the Stock Market
Chari, Anusha; Ouimet, Paige; Tesar, Linda L. - 2021
When firms from developed markets acquire firms in emerging markets, market-capitalization-weighted monthly joint returns show a statistically significant increase of 1.8%. Panel data estimations suggest that the value gains from cross-border M&A transactions stem from the transfer of majority...
Persistent link: https://www.econbiz.de/10013212613
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Premium for Heightened Uncertainty : Explaining Pre-Announcement Market Returns
Hu, Grace Xing - 2019
the second risk is associated with the “heightened uncertainty” in anticipation of a pre-scheduled announcement, relating … measures. We further provide direct evidence on the heightened uncertainty and its later resolution prior to the macroeconomic … releases including FOMC. In addition to the pre-scheduled announcements, heightened uncertainty can also be triggered …
Persistent link: https://www.econbiz.de/10012870731
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The Success of Acquisitions : Evidence from Disvestitures
Kaplan, Steven N.; Weisbach, Michael S. - 2022
This paper studies a sample of large acquisitions completed between 1971 arid 1982. By the end of 1989, acquirers have divested almost 44% of the target companies. Using the accounting gain or loss recognized by the acquirer, press reports, and the sale price, we characterize the ex post success...
Persistent link: https://www.econbiz.de/10013309233
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Wealth Destruction on a Massive Scale? A Study of Acquiring-Firm Returns in the Recent Merger Wave
Moeller, Sara B. - 2004
Acquiring-firm shareholders lost 12 cents at the announcement of acquisitions for every dollar spent on acquisitions for a total loss of $240 billion from 1998 through 2001, whereas they lost $7 billion in all of the 1980s, or 1.6 cents per dollar spent. Though the announcement losses to...
Persistent link: https://www.econbiz.de/10012785969
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What is the Price of Hubris? Using Takeover Battles to Infer Overpayments and Synergies
Hietala, Pekka T. - 2002
We present a framework for determining the information that can be extracted from stock prices around takeover contests … relative synergies. The takeover contest for Paramount in 1994 illustrates one of these generic cases. We estimate that Viacom …
Persistent link: https://www.econbiz.de/10012787083
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Takeover Bids Below the Expected Value of Minority Shares
Bebchuk, Lucian A. - 2008
Focusing on takeover bids whose outcome can be predicted in advance with certainty, Grossman and Hart established the …
Persistent link: https://www.econbiz.de/10012774564
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Target Revaluation after Failed Takeover Attempts – Cash Versus Stock
Malmendier, Ulrike - 2012
Cash- and stock-financed takeover bids induce strikingly different target revaluations. We exploit detailed data on … unsuccessful takeover bids between 1980 and 2008, and show that targets of cash offers are revalued on average by +15% after deal … longer horizons. We find no evidence that future takeover activities or operational changes explain these differences. While …
Persistent link: https://www.econbiz.de/10013104060
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Capital Share Risk in U.S. Asset Pricing
Lettau, Martin - 2014
A single macroeconomic factor based on growth in the capital share of aggregate income exhibits significant explanatory power for expected returns across a range of equity characteristic portfolios and non-equity asset classes, with risk price estimates that are of the same sign and similar in...
Persistent link: https://www.econbiz.de/10013040236