Dr Antonios Siganos A.Siganos@napier.ac.uk
Professor
We focus on the market expectation hypothesis to explain the increase in share prices and trading volume of target firms before their merger announcements that have conventionally been attributed to either insider trading or market expectation. We use Financial Times (FT) coverage as a proxy of merger expectation and search for relevant articles for 783 UK target firms between 1998 and 2010. We identify a total of 1049 rumour articles and find that the FT market expectation proxy explains a small percentage of the target price run-ups. Results are strong during the sample period, even though the magnitude for both returns and trading volume tends to decrease within recent years. There is also a strong contemporaneous relation between abnormal returns and trading volume. Unexplained increases in target prices and trading volume may be attributed to insider trading.
Siganos, A., & Papa, M. (2015). FT coverage and UK target price run-ups. European Journal of Finance, 21(12), 1070-1089. https://doi.org/10.1080/1351847x.2014.924077
Journal Article Type | Article |
---|---|
Acceptance Date | May 6, 2014 |
Online Publication Date | Jun 9, 2014 |
Publication Date | Sep 26, 2015 |
Deposit Date | Jul 6, 2021 |
Journal | The European Journal of Finance |
Print ISSN | 1351-847X |
Electronic ISSN | 1466-4364 |
Publisher | Routledge |
Peer Reviewed | Peer Reviewed |
Volume | 21 |
Issue | 12 |
Pages | 1070-1089 |
DOI | https://doi.org/10.1080/1351847x.2014.924077 |
Keywords | mergers and acquisitions, target firms, target price run-ups, media coverage |
Public URL | http://researchrepository.napier.ac.uk/Output/2785045 |
Referee quality and article citations: a case study of a finance journal
(2024)
Journal Article
Firm-level pollution and membership of emission trading schemes
(2024)
Journal Article
Climate theory & managerial decisions on cross-border mergers
(2023)
Journal Article
International Music Preferences as a Measure of Culture: Evidence from Cross-Border Mergers
(2023)
Journal Article
Does the Stock Market Influence Investor Everyday Decisions? The Case of Parking Violations
(2022)
Journal Article
About Edinburgh Napier Research Repository
Administrator e-mail: repository@napier.ac.uk
This application uses the following open-source libraries:
Apache License Version 2.0 (http://www.apache.org/licenses/)
Apache License Version 2.0 (http://www.apache.org/licenses/)
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2025
Advanced Search