Abraham, Rebecca; Harrington, Charles - In: Journal of Economic Studies 40 (2013) 5, pp. 658-670
advantage of their knowledge of forthcoming mergers by trading heavily at announcement. For cash mergers, they respond to a … positive signal by purchasing stock, and for stock mergers, they respond to a negative signal by selling stock. In response … framework that links informed and liquidity trading through price changes. Findings – For cash mergers, transaction fees …