Purpose: On the backdrop of the recent value versus growth debate in both academics and investment community, this paper investigates which is a better strategy, value or growth strategy. Design/methodology/approach: Reworking the Euler equation, this paper derives the relationship among return,...

We document market anticipation of merger bids and that less anticipated bids earn significantly higher announcement returns. Subsequent bidders experience significant and positive returns surrounding initial industry bid announcements. These results suggest that announcement period returns...