Google attention and target price run ups

Siganos, Antonios

Abstract

We explore the increase in the share prices of target firms before their merger announcements. We use a novelty Google search volume to proxy the market expectation hypothesis according to which firms with an abnormal upward change in Google searches are identified as firms with potential merger activity. We find that Google indicators can explain a larger percentage of the price increase in target firms before their mergers than the Financial Times. However even the Google proxy of the market expectation hypothesis can only explain at best 36% of the target price run ups.

Citation

Siganos, A. (2013). Google attention and target price run ups. International Review of Financial Analysis, 29, 219-226. https://doi.org/10.1016/j.irfa.2012.11.002

• Journal Article Type: Article
• Acceptance Date: Nov 28, 2012
• Online Publication Date: Dec 5, 2012
• Publication Date: 2013-09
• Deposit Date: Jul 6, 2021
• Journal: International Review of Financial Analysis
• Print ISSN: 1057-5219
• Electronic ISSN: 1873-8079
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Pages: 219-226
• DOI: https://doi.org/10.1016/j.irfa.2012.11.002
• Keywords: Target price run ups, Mergers, Market anticipation, Google search volume
• Public URL: http://researchrepository.napier.ac.uk/Output/2785065