Stock Price Response to News of Securities Fraud Litigation: Market Efficiency and the Slow Diffusion of Costly Information

2000 ◽  
Author(s):  
Paul A. Griffin ◽  
Joseph A. Grundfest ◽  
Michael A. Perino
Keyword(s):  
Market Efficiency ◽  
Stock Price ◽  
Securities Fraud ◽  
Costly Information ◽  
Price Response ◽  
Slow Diffusion

Stock Price Response to News of Securities Fraud Litigation: An Analysis of Sequential and Conditional Information

Abacus ◽  
2004 ◽  
Vol 40 (1) ◽  
pp. 21-48 ◽  
Author(s):  
Paul A. Griffin ◽  
Joseph A. Grundfest ◽  
Michael A. Perino
Keyword(s):  
Stock Price ◽  
Securities Fraud ◽  
Price Response ◽  
Conditional Information

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.

Long-term reactions to large stock price declines and increases in the European stock market: a note on market efficiency

2010 ◽  
Vol 36 (2) ◽  
pp. 400-423 ◽  
Author(s):  
Achim Himmelmann ◽  
Dirk Schiereck ◽  
Marc W. Simpson ◽  
Moritz Zschoche
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Stock Price

Testing for Overreaction and Return Continuations in Stock Price Index Returns

2012 ◽  
pp. 137-156
Author(s):  
Nathan Lael Joseph ◽  
Khelifa Mazouz
Keyword(s):  
Market Efficiency ◽  
Stock Markets ◽  
Stock Price ◽  
Price Index ◽  
Abnormal Returns ◽  
Market Size ◽  
Price Shocks ◽  
Stock Indices ◽  
Stock Price Index ◽  
Initial Results

In this paper, the authors examine the impacts of large price changes (or shocks) on the abnormal returns (ARs) of a set of 39 national stock indices. Their initial results support returns continuations for both positive and negative shocks in line with prior results. After controlling for market size, their findings provide support for over-reaction, return continuations and market efficiency, but these result depend on the magnitude of the price shocks. Whilst the market is efficient when the positive shocks are large, the market also over-reacts when negative shocks are large. To illustrate, for large stock markets that are more liquid, positive shocks of more than 5% generate an insignificant day one CAR of -0.004%, whilst negative shocks of more than 5% generate a positive and significant day one CAR of 0.662%. In contrast, positive (negative) shocks of less than 5% generate a significant one day CAR of 0.119% (-0.174%) for these same (large) stock markets.

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
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