scholarly journals The Stock Market Reaction to Mergers and Acquisitions: Evidence from the Banking Industry

2020 ◽  
Author(s):  
Juan M. Lozada ◽  
Lina Cortes ◽  
Daniel Velasquez
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Banking Industry ◽  
Market Reaction ◽  
Stock Market Reaction

scholarly journals FortuneFavors the Bold

2017 ◽  
Vol 52 (3) ◽  
pp. 895-925 ◽  
Author(s):  
Costanza Meneghetti ◽  
Ryan Williams
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Chief Executive Officers ◽  
Market Reaction ◽  
Chief Executive ◽  
Exogenous Shock ◽  
Stock Market Reaction ◽  
Corporate Decisions ◽  
Executive Officers

We investigate whether incentives to join theFortune500 affect corporate decisions. Firms closer to the cutoff appear to take actions to join the list by engaging in more mergers and acquisitions activity, bidding for larger targets, and paying higher takeover premia. Further, the relation is stronger for firms with more-entrenched chief executive officers, and the stock market reaction to bids is worse when bidders are close to theFortune500’s cutoff. A 1994 methodological change byFortuneacts as an exogenous shock for identification. Our results suggest that firms try to increase revenues to join theFortune500 but that such actions adversely affect shareholders.

The effect of slack, diversification, and time to recall on stock market reaction to toy recalls

2017 ◽  
Vol 193 ◽  
pp. 244-258 ◽  
Author(s):  
Lincoln C. Wood ◽  
Jason X. Wang ◽  
Karin Olesen ◽  
Torsten Reiners
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Stock Market Reaction
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