ex ante takeover exposure positively and robustly relates to cross-sectional expected returns. The relation between size … and expected returns becomes positive or insignificant, rather than negative, conditional on this takeover characteristic …. Asset pricing models that include a factor based on the takeover characteristic outperform otherwise similar models that …

of takeover rumors of publicly traded US companies shows that public information on a rumored takeover target … pending takeover will be materialized. To our knowledge, this predictive power of historical CAR for the takeover rumor … historical CARs. This suggests that the market overreacts to takeover rumors that will not be materialized. Furthermore, trading …

Using United States takeover bids, we investigate the importance of information asymmetry in self-selection when … evaluating the abnormal returns of financial versus strategic takeover targets during a period of possible informed trade. Sample … selection bias due to differences in financial versus strategic takeover bids information environments is controlled for using …