Stock Price Response to Transacting Technology Rights: Quick Reversal of Good Fortunes?!

2012 ◽  
Author(s):  
Abdelaziz Chazi ◽  
Ashraf Khallaf ◽  
Yi (Ian) Liu ◽  
Zaher Zantout
Keyword(s):  
Stock Price ◽  
Price Response

The Effect of Acquirer Net Operating Losses on Acquisition Premiums and Acquirer Abnormal Returns

2019 ◽  
Vol 41 (2) ◽  
pp. 103-124
Author(s):  
Merle M. Erickson ◽  
Karen Ton ◽  
Shiing-wu Wang
Keyword(s):  
Stock Price ◽  
Abnormal Returns ◽  
Price Response ◽  
Transaction Prices ◽  
Merger Announcement ◽  
Tax Benefits

ABSTRACT This study examines whether acquirer NOL-related tax benefits generated in an acquisition are shared with the target. For a sample of 1,959 acquisitions, we find that acquisitions of profitable targets by acquirers with NOLs are associated with higher acquisition premiums than acquisitions by non-NOL acquirers. This result indicates that potential post-acquisition tax benefits from use of acquirer NOLs are shared with the target in the form of higher transaction prices. We also find that the acquirer's merger announcement stock price response is positively associated with these tax benefits, which is consistent with the conclusion that acquirers retain part of these potential tax benefits.

Stock Price Response to Calls of Convertible Bonds: Still a Puzzle?

2007 ◽  
Vol 36 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Ivan E. Brick ◽  
Oded Palmon ◽  
Dilip K. Patro
Keyword(s):  
Stock Price ◽  
Convertible Bonds ◽  
Price Response

Agency Costs and the Short-Run Stock Price Response to Capital Expenditures

2012 ◽  
Vol 47 (2) ◽  
pp. 375-399
Author(s):  
Sungsoo Kim ◽  
Eugene Pilotte ◽  
Joon Sun Yang
Keyword(s):  
Stock Price ◽  
Agency Costs ◽  
Capital Expenditures ◽  
Price Response ◽  
Short Run

scholarly journals The Effects of Operational Structure Change on Performance after Seasoned Equity Offerings

2017 ◽  
Author(s):  
Chihyoun Ahn ◽  
Mi-Ok Kim ◽  
Hyung-Rok Jung
Keyword(s):  
Sustainable Development ◽  
Stock Price ◽  
Operating Performance ◽  
Seasoned Equity Offerings ◽  
Structure Change ◽  
Equity Offerings ◽  
Price Response ◽  
Sustainability Strategy ◽  
Rate Of Increase ◽  
Operational Structure

Sustainability is directly linked to firms’ survival in competitive markets. To survive, firms need extra capital, and seasoned equity offerings (SEOs) are one sustainability strategy. Additional resources from SEOs leads to changes in firms’ operational structure, which brings future sustainability. This study investigates whether there is sustainability in firms’ operational structure and the effects of sustainable development on operational performance and market reaction. We measure the operational structure change of firms as three proxies: 1) the rate of increase in the number of operating segments, 2) the Berry–Herfindahl index using the ratio of sales of each operating segment out of total sales, and 3) the size of net investment in plant and equipment. Our results show that operational structure change has a statistically significant and positive correlation with long-term operating performance. In addition, there is no significant stock price response at first, but the operating performance in the next term is perceived as a favorable factor after 3 years. The results show that there are different responses in the stock market toward operational structure change. The empirical results confirm that firms with SEO have sustainable development in operational structure and that markets recognize firms’ sustainability strategy arising from SEOs.

A Study on Stock Price Response to Disclosure Effect by Purpose of Corporate Divestiture

2018 ◽  
Vol 20 (3) ◽  
pp. 1243-1254
Author(s):  
Jong kook Kim ◽  
Youngtae Byun ◽  
Soo Kyung Kim
Keyword(s):  
Stock Price ◽  
Price Response

scholarly journals Quantifying stock-price response to demand fluctuations

2002 ◽  
Vol 66 (2) ◽  
Author(s):  
Vasiliki Plerou ◽  
Parameswaran Gopikrishnan ◽  
Xavier Gabaix ◽  
H. Eugene Stanley
Keyword(s):  
Stock Price ◽  
Price Response ◽  
Demand Fluctuations

scholarly journals Stock price response to earnings announcements: Developed versus emerging economies

2018 ◽  
Vol 15 (4) ◽  
pp. 29-45 ◽  
Author(s):  
Ahmed M. Al-Baidhani
Keyword(s):  
Stock Price ◽  
Value Relevance ◽  
Price Change ◽  
Explanatory Power ◽  
Abnormal Returns ◽  
Relevance Theory ◽  
Individual Event ◽  
Price Changes ◽  
Price Response ◽  
Earnings Response Coefficient

This study aims to evaluate the usefulness and relevance of accounting earnings disclosures, as the key determinant of stock price changes. The main objective is to examine whether earnings response coefficient (ERC) behaviour could explain more fully the stock price changes, as to the reason why the stock price change is not equal to the number of announced earnings. The study is done with data sets from five countries of the Organization for Economic Co-operation and Development (OECD) group and Malaysia. The analysis is then grouped into developed markets: Japan, UK, Sweden, and Switzerland; and emerging markets: Malaysia and Mexico, for the period 2001-2014. Two measures of abnormal returns are regressed against the size of the announced earnings. The first regression uses measures from individual events. The second regression uses a new measure; that is, from portfolios made out of all observations sorted by size of earnings into ten portfolios for each country and combination of countries. The portfolio method used was aimed at controlling possible idiosyncratic-errors-in-variables problem using individual event measures. The results using individual-event measures resulted in reasonable ERC sizes with high R2 explanatory power, a little higher than those reported in prior studies on other countries. Importantly, portfolio-based ERC is very close to the magnitude of the earnings in some tests, which supports the famous value relevance theory in accounting. This finding is new to this literature.

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