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We investigate investor behavior and firm performance related to corporate restructuring announcements using a database of Security Exchange Commission (SEC) filings by U.S. firms and web traffic on the SEC’s website. We find that abnormal investor attention positively predicts restructuring...
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We test several hypotheses on how takeover premium is related to investors’ divergence of opinion on the target …’s equity value. We show that the total takeover premium, the pre-announcement target stock price runup and the post … market-level investor sentiment. When divergence of opinion is higher, a firm is less likely to be a takeover target …
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Behavioral finance models imply that an increase in shares outstanding leads to a lower stock price for firms with greater diversity in opinion among investors. Information asymmetry models imply that share issues by firms with greater information asymmetries are accompanied by larger share...
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