• Media type: E-Book
  • Title: Predictability of Industry Returns After M&A Announcements
  • Contributor: Funke, Christian [Author]; Gebken, Timo [Other]; Johanning, Lutz [Other]; Michel, Gaston [Other]
  • Published: [S.l.]: SSRN, [2010]
  • Extent: 1 Online-Ressource (32 p)
  • Language: Not determined
  • DOI: 10.2139/ssrn.887289
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 2006 erstellt
  • Description: This paper documents a strong and prevalent drift in long-term industry returns after Mamp;A announcements. Specifically, industries that experience positive average announcement reactions continue to do well in the future, while industries that experience negative average announcement reactions continue to do poorly. Industry Mamp;A investment strategies, which buy positively reacting industries and sell negatively reacting industries, appear profitable even after controlling for size and book-to-market effects in returns. Profitability has strengthened over time and seems to exist also for the largest stocks. The evidence suggests that capital markets underreact to the industry-wide information provided by merger announcements
  • Access State: Open Access