This chapter surveys the recent empirical literature and adds to the evidence on takeover
bids for US targets, 1980–2005. The availability of machine readable transaction databases …

This paper presents a review of empirical research on the impact of acquisitions on firm
performance. The evidence suggests that, in the short run, acquisitions have at best an …

This paper provides an overview of the academic literature on the market for corporate
control, and focuses specifically on firms' performance around and after a takeover. Despite …

Does CEO overconfidence help to explain merger decisions? Overconfident CEOs over-
estimate their ability to generate returns. As a result, they overpay for target companies and …

We examine a sample of 12,023 acquisitions by public firms from 1980 to 2001. The equally
weighted abnormal announcement return is 1.1%, but acquiring-firm shareholders lose …

We construct investor sentiment indices for six major stock markets and decompose them
into one global and six local indices. In a validation test, we find that relative sentiment is …

Corporate investment decisions require managers to forecast expected future cash flows
from potential investments. Although these forecasts are a critical component of successful …

ABSTRACT I describe asset price dynamics caused by the slow movement of investment
capital to trading opportunities. The pattern of price responses to supply or demand shocks …

This paper examines institutional price pressure in equity markets by studying mutual fund
transactions caused by capital flows from 1980 to 2004. Funds experiencing large outflows …

Acquiring‐firm shareholders lost 12 cents around acquisition announcements per dollar
spent on acquisitions for a total loss of 240billionfrom1998through2001,whereastheylost 7 …