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Does speculative news hurt productivity? : evidence from takeover rumors

Andres, Christian; Bazhutov, Dmitry; Cumming, Douglas J.; … - 2023

Speculative news on corporate takeovers may hurt productivity because uncertainty and threat of job loss cause anxiety … that firm productivity temporarily declines upon announcements of speculative takeover rumors that do not materialize. This … speculative financial news and the costs of takeover threats. …

Persistent link: https://www.econbiz.de/10014234328

Is the Market Underreacting or Overreacting to Open Market Share Repurchases? A UK Perspective

Crawford, Ian Peter - 2011

Using UK open market repurchases, we reject the market underreaction hypothesis and the market overreaction hypothesis proposed by (Ikenberry, Lakonishok and Vermaelen 1995) and (Peyer and Vermaelen 2009), respectively. The evidence supports that the UK market reacts slowly to actual repurchases...

Persistent link: https://www.econbiz.de/10013133545

Institutional Trades Around Takeover Announcements : Skill vs. Inside Information

Jegadeesh, Narasimhan - 2011

This paper examines the pattern and profitability of institutional trades around takeover announcements. We find that … the trades of funds as a group, either before or after takeover announcements, are not profitable. However, funds whose …

Persistent link: https://www.econbiz.de/10013133833

Short Selling Around Corporate Acquisitions

Doukas, John A. - 2010

Using daily short sale transactions data for firms traded in the Taiwan Stock Exchange (TWSE) from January 1991 to January 2007, we examine the pattern of short selling trading prior to 338 acquisition announcements. Consistent with the view that short sellers act as informed traders, we find...

Persistent link: https://www.econbiz.de/10013139762

Why Has the FCAs Market Cleanliness Statistic for Takeover Announcements Decreased Since 2009?

Goldman, Jim - 2017

After remaining close to 30% for four years, the FCA's market cleanliness statistic for takeovers decreased to about 15 … exclude methodological bias, information leaking earlier relative to the takeover announcement or changes in sample …

Persistent link: https://www.econbiz.de/10012968355

Intra-Industry Effects of IPOs on Stock Repurchase Decisions of Rival Firms

Nguyen, Thanh Thiet - 2014

Previous studies suggest that the market perceives IPOs as bad news (i.e., competitive threats) to existing firms in the same industry. At the same time, the market has a tendency to be overly optimistic about IPO prospects, especially during hot IPO markets. Thus, the negative industry rival...

Persistent link: https://www.econbiz.de/10013058412

Competitors' Stock Price Reaction to Mass Layoff Announcements

Bordeman, Adam - 2016

Using data on layoff announcements by S&P 500 firms, we show that layoff announcements mostly contain industrywide news. Competitors' stock price reactions are positively correlated with the announcer's returns. This contagion effect is stronger for competitors whose values depend on growth...

Persistent link: https://www.econbiz.de/10012990951

Corporate transactions in hard-to-value stocks

Ben-David, Itzhak; Kim, Byungwook; Moussawi, Hala; … - 2021

Hard-to-value stocks provide opportunities for managers to exploit their informational advantage through trading on their firms' and their own personal accounts. In contrast to the prediction that such transactions reflect private information about future events, they are contrarian and heavily...

Persistent link: https://www.econbiz.de/10012816430

Market Response to Syndicated Loan Announcements During the Global Financial Crisis : Failed vs. Acquiring Banks

Gasbarro, Dominic - 2018

We evaluate and compare market reaction to syndicated loan announcements for two sets of high-profile banks, consisting of five banks that failed in 2008 during the financial crisis and the five banks that ultimately acquired them. Results show that loan announcements are viewed differently for...

Persistent link: https://www.econbiz.de/10012913837

Store of value or speculative investment? : Market reaction to corporate announcements of cryptocurrency acquisition

Gimenes, André D.; Colombo, Jéferson A.; Yousaf, Imran - In: Financial innovation : FIN 9 (2023) 1, pp. 1-31

In this study, we analyze the stock market reaction to 35 events associated with 32 publicly traded companies from six countries that have announced cryptocurrency acquisitions, selling, or acceptance as a means of payment. Our analysis focuses on tra‑ ditional frms whose core business is...

Persistent link: https://www.econbiz.de/10014526928