skip to primary navigationskip to content
 

F&A seminar - Anjana Ranjamani, Katz Graduate School of Business, University of Pittsburgh

When Feb 19, 2013
from 11:00 AM to 12:30 PM
Where Cambridge Judge Business School, Castle Teaching Room
Contact Name
Add event to calendar vCal
iCal

Managerial Learning from Target Runup”

 

Anjana Ranjamani, Katz Graduate School of Business, University of Pittsburgh

Abstract:

Targets of merger deals experience significant value increases in the days leading up to the announcement of a deal. Existing literature attributes the runup in target value solely to deal anticipation and as such the runup is regarded as being uninformative about the surplus that can be generated from the deal. I find empirical evidence that target runup is positively related to bidder gain and to deal completion probability and that these results are strongest when the level of uncertainty regarding deal surplus is high. The results suggest that target runup reflects the market consensus about the deal surplus and that this independent outside signal of deal surplus allows bidder insiders to update their priors and improve their decision making in regards to the deal. These results add to our understanding of managerial learning from the market and the role of the market in determining the outcome of privately negotiated deals.

« January 2017 »
January
MoTuWeThFrSaSu
1
2345678
9101112131415
16171819202122
23242526272829
3031

RSS Feed Latest news

CERF PhD Scholarship competition 2017 - now open

Nov 08, 2016

For the fifth year, Cambridge Endowment for Research in Finance is offering a scholarship scheme.

View all news

Upcoming events

Cambridge Finance Workshop - Bart Lambrecht

Jan 26, 2017

Room W4.03, Cambridge Judge Business School

Cambridge Finance Workshop - Agostino Capponi

Feb 23, 2017

Room W4.03, Cambridge Judge Business School

Previous events

Upcoming events