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.

« November 2018 »
November
MoTuWeThFrSaSu
1234
567891011
12131415161718
19202122232425
2627282930

RSS Feed Latest news

Winners of the Best Student Paper Award 2018 announced

Aug 21, 2018

Cambridge Finance is proud to announce the winners of the Best student Paper Award for 2017-2018

View all news

Upcoming events

Cambridge Finance Workshop - Hubert Kempf

Nov 22, 2018

Room W4.05, Cambridge Judge Business School

Cambridge Finance Workshop - Jean-Edouard Colliard

Jan 24, 2019

Room W4.05, Cambridge Judge Business School

Cambridge Finance Workshop -Naomi R. Lamoreaux

Feb 07, 2019

W2.02, Cambridge Judge Business School

Previous events

Upcoming events