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, and higher idiosyncratic volatility. The opposite result holds for acquisitions of public firms paid for with cash for … idiosyncratic volatility. We show that this evidence can best be explained by models that emphasize information asymmetries, but the …
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We use a proprietary dataset to test the implications of several asymmetric information models on how short-lived private information affects trading strategies and liquidity provision. Our identification rests on information acquisition before analyst recommendations are publically announced....
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