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/methodology/approach - This paper presents a model of the disciplinary takeover based on the efficient market hypothesis which provides … appropriate measures for it to examine the financial performance of acquiring banks after takeover. Findings - The results … indicate that the takeover market for large banks was ineffective in two aspects: the market did not distinguish strong banks …
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The impact of U.S. bank loan announcements on the stock prices of the corporate borrowers has been decreasing during the two last decades with estimated two-day cumulative abnormal returns slipping from almost 200 basis points in the beginning of the 1980s to close to zero by the turn of the...
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We show that limited dealer participation in the market, coupled with an informational friction resulting from high frequency trading, can induce demand for liquidity to be upward sloping and strategic complementarities in traders' liquidity consumption decisions: traders demand more liquidity...
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shock to the threat of takeover to examine whether the market for corporate control has a real effect on firm-level stock … suggests that an active takeover market has a disciplining effect on managerial bad news hoarding and leads to lower future …
Persistent link: https://www.econbiz.de/10012853026
Market reaction to mergers and acquisitions is a popular research topic in finance. It has been well documented in empirical literature that target companies earn significant abnormal market returns in corporate acquisitions. However, the effects of stock market crashes, and the effects of...
Persistent link: https://www.econbiz.de/10013052351