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Dessaint, Olivier; Eckbo, B. Espen; Golubov, Andrey - 2019

Largely constant average acquirer returns over the past four decades mask fundamental changes in the takeover market … the 1980s. Offsetting this increase, the average bidder-specific component has declined. We propose a theory of bidder …-specific synergies to help interpret these opposing trends. In our theory and in the data, acquirer returns increase with the extent to …

Persistent link: https://www.econbiz.de/10012104582

On the fast track: information acquisition costs and information production

Chen, Deqiu; Ma, Yujing; Martin, Xiumin; Michaely, Roni - 2020

Using the introduction of high-speed rail as exogenous shocks to costs of information acquisition, we show that reductions in information-acquisition costs lead to a significant increase in information production and improvement in output quality, evidenced by higher frequency of analysts...

Persistent link: https://www.econbiz.de/10012181499

Financial signaling with open market share repurchases and private redemptions

Warmdt, Luca; Užik, Martin; Löcher, Markus - 2018

Financial decisions can be used to convey information to uninformed market participants aiming to mitigate pricing inefficiencies. Corporate share repurchases are particularly interesting since they have emerged as an integral component of corporate payout policy with a global spread. The...

Persistent link: https://www.econbiz.de/10011823136

Creditor Rights, Claims Enforcement, and Bond Returns in Mergers and Acquisitions

Renneboog, Luc - 2016

By means of an international sample of cross-border mergers and acquisitions (M&As) involving firms with outstanding Eurobonds from the US, Europe, and other countries around the world, we show that bond performance around M&A announcements is sensitive to cross-country differences in creditor...

Persistent link: https://www.econbiz.de/10012996646

Information Acquisition with Heterogeneous Valuations

Rahi, Rohit - 2020

We study the market for a risky asset with uncertain heterogeneous valuations. Agents seek to learn about their own valuation by acquiring private information and making inferences from the equilibrium price. As agents of one type gather more information, they pull the price closer to their...

Persistent link: https://www.econbiz.de/10012848309

Attention to Detail : Learning About Mergers

Aiken, Adam L.; Lee, Choonsik - 2022

We directly study the information gathering process around a merger announcement by using the IP addresses accessing Form 8-K filings for merger agreements. This allows us to measure who pays attention to the announcement, how attention varies across mergers, and if this attention is related to...

Persistent link: https://www.econbiz.de/10013298803

Overlapping Insiders and the Method of Payment in Acquisitions : New Tests and Evidence on Adverse Selection

Jindal, Varun; Seth, Rama - 2023

Exploiting a unique setting of overlapping insiders between acquirers and targets in India, we examine how information asymmetry between the transacting parties influences the returns to acquiring firms’ shareholders as well as the method of payment. Using a novel dataset, we find that...

Persistent link: https://www.econbiz.de/10014258418

Information disclosure, intertemporal risk sharing, and asset prices

Dang, Tri-Vi; Hakenes, Hendrik - 2010

Disclosure of information triggers immediate price movements, but it mitigates price movements at a later date, when the information would otherwise have become public. Consequently, disclosure shifts risk from later cohorts of investors to earlier cohorts. Hence, disclosure policy can be...

Persistent link: https://www.econbiz.de/10008662605

Extended dividend, cash flow and residual income valuation models : accounting for deviations from ideal conditions

Heinrichs, Nicolas; Hess, Dieter; Homburg, Carsten; … - 2011 - This version: May 25, 2011

Standard equity valuation approaches (i.e., DDM, RIM, and DCF model) are derived under the assumption of ideal conditions, such as infinite payoffs and clean surplus accounting. Because these conditions are hardly ever met, we extend the standard approaches, based on the fundamental principle of...

Persistent link: https://www.econbiz.de/10009270446

When and how is voluntary disclosure quality reflected in equity prices?

Eugster, Florian; Wagner, Alexander F. - 2011

This paper investigates the extent to which voluntary disclosure quality (VDQ) of firms is reflected in equity prices. As a novel contribution, we explore the idea that the speed with which equity prices reflect any benefits or costs of VDQ varies across firms. We find that in environments where...

Persistent link: https://www.econbiz.de/10009295768