Bhanot, Karan; Martinez, Valeria; Kadapakkam, Palani-Rajan - College of Business, University of Texas-San Antonio
Prior research has documented anomalous profits as high as 9% from participating in stock repurchase tender offers. The trading strategy is to buy shares in the market just before offer expiration and tender; it involves a trading horizon of just a few days. The large profits given a short...