Similar Search Results

Cash Holdings and Bond Returns Around Takeovers

Podolski, Edward - 2016

paper is the first to document the role of cash holdings on bondholder wealth around takeover announcements …

Persistent link: https://www.econbiz.de/10013006488

Takeover Vulnerability and the Behavior of Short-Term Stock Returns

Chae, Joon - 2013

This paper proposes and tests the hypothesis that takeover vulnerability contributes to short-term price reversal by … motivating investors to trade speculatively and also by making investors demand immediacy in their trades. That is, takeover … several different measures of takeover vulnerability, we find that takeover vulnerability is positively related to price …

Persistent link: https://www.econbiz.de/10013083343

FinTech Mergers

Wang, Joanna (Xiaoyu); Zhang, Alan L. - 2022

FinTech companies and FinTech mergers are increasingly prevalent over the past decades. This paper explores the motives and consequences of FinTech mergers. FinTech firms have a greater likelihood of becoming targets in mergers and acquisitions (M&As). FinTech mergers increase the valuation of...

Persistent link: https://www.econbiz.de/10013301485

Does a Firm's Takeover Vulnerability Cause Its Stock Price to Deviate from Random Walks?

Chae, Joon - 2013

This paper examines whether a firm's takeover vulnerability increases the scope of speculative noise trading for its … stock. Specifically, the paper tests whether takeover vulnerability overly motivates investors to acquire and trade on … is larger when its takeover vulnerability is greater and its information environment is poorer. In a sufficiently good …

Persistent link: https://www.econbiz.de/10013093734

Is Positive Sentiment in Corporate Annual Reports Informative? Evidence from Deep Learning

Azimi, Mehran - 2020

We use a novel text classification approach from deep learning to more accurately measure sentiment in a large sample of 10-Ks. In contrast to most prior literature, we find that positive, and negative, sentiment predicts abnormal return and abnormal trading volume around 10-K filing date and...

Persistent link: https://www.econbiz.de/10012851226

Convergence of Expected Returns through Arbitrage : Beta Is Indifferent to Equity Valuation

Miyamoto, Kenji - 2018

The CAPM is commonly used for an introduction of the equity cost in practice to calculate the corporate value, which is composed by the risk-free rate, equity market return and each respective beta. However, there is a fundamental complication between the risk, cost and return for the equity...

Persistent link: https://www.econbiz.de/10012907181

The Effect of Credit, Liquidity and Rollover Risk on Bondholder Wealth in Mergers and Acquisitions

Jankowitsch, Rainer; Pauer, Florian - 2021

We analyze M&A announcements and focus on the potential impact of these deals on bond prices in the US corporate bond market. In particular, we investigate the effect of changes in credit, liquidity and rollover risk. This is important, as especially target firms are often small with rather...

Persistent link: https://www.econbiz.de/10013222553

Merger Waves, Pseudo Market Timing and Post-Merger Performance

Esmer, Burcu - 2016

Do managers time the market when they make merger decisions? Merger and acquisition waves seem to correspond with market tides, cresting with bull markets. A contentious debate exists over whether this trend indicates managerial market timing ability. Pseudo market timing, introduced by Schultz...

Persistent link: https://www.econbiz.de/10013008783

CEO Overconfidence and the Value of Corporate Cash Holdings

Aktas, Nihat - 2018

Cash holding is on average more valuable when firms are managed by overconfident CEOs. Economically, having an overconfident CEO on board is associated with an increase of $0.28 in the value of $1.00 cash holding. The positive effect of CEO overconfidence on the value of cash concentrates among...

Persistent link: https://www.econbiz.de/10012936741

The Effect of CEO Departure on Target Firms’ Post-Takeover Performance : Evidence from Not-Delisting Target Firms

Demirtas, Gul - 2016

Using a sample of target firms that do not delist from the stock market after a majority takeover, we investigate the … on equity. However, we do not find a significant effect of CEO turnover on target stock returns in the post-takeover …

Persistent link: https://www.econbiz.de/10013003124