A rundown of merger target run-ups

Download
Citations
Altmetric
Author
Dutordoir, M; Vagenas-Nanos, E; Verwijmeren, P; Wu, BDate
2021Source Title
Financial ManagementPublisher
WileyUniversity of Melbourne Author/s
Verwijmeren, PatrickAffiliation
FinanceMetadata
Show full item recordDocument Type
Journal ArticleCitations
Dutordoir, M., Vagenas-Nanos, E., Verwijmeren, P. & Wu, B. (2021). A rundown of merger target run-ups. Financial Management, Forthcoming, https://doi.org/10.1111/fima.12331.Access Status
Open AccessAbstract
We provide evidence of a drastic drop in stock run-ups of U.S. target firms preceding merger and acquisition (M&A) announcements over the past decades. The median target run-up declines from approximately 10% in the 1980s to 2% after 2010. The trend in target run-ups cannot be fully explained by deal or firm characteristics associated with deal anticipation. However, it disappears after controlling for changes in the strength of U.S. insider trading regulation over the research period. Further analyses corroborate our conclusion that more stringent insider trading regulation is the most likely explanation for the reduction in target run-ups.
Export Reference in RIS Format
Endnote
- Click on "Export Reference in RIS Format" and choose "open with... Endnote".
Refworks
- Click on "Export Reference in RIS Format". Login to Refworks, go to References => Import References
Collections
- Minerva Elements Records [45689]
- Finance - Research Publications [121]