Merger Announcements and Trading

Merger Announcements and Trading

We test whether an increase either in informed trades or in large liquidity trades leads to greater correlation of trading volume across markets. We confirm that both trading volume and positive returns of target companies are abnormally high before merger announcements. We find a statistically sign...

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Veröffentlicht in:The Journal of financial research 2002-06, Vol.25 (2), p.263-278
Hauptverfasser: Ascioglu, N. Asli, McInish, Thomas H., Wood, Robert A.
Format: Artikel
Sprache:eng
Schlagworte:
Acquisitions & mergers
Correlation analysis
Hypotheses
JEL classifications: G19
Securities trading
Securities trading volume
Stock exchanges
Studies
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container_title The Journal of financial research
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creator Ascioglu, N. Asli
McInish, Thomas H.
Wood, Robert A.
description We test whether an increase either in informed trades or in large liquidity trades leads to greater correlation of trading volume across markets. We confirm that both trading volume and positive returns of target companies are abnormally high before merger announcements. We find a statistically significant increase in the correlation between New York Stock Exchange and Nasdaq/regional trading volume before merger announcements. Furthermore, after merger announcements, we find evidence of both large liquidity trading and a statistically significant increase in the correlation of trading volume across markets.
doi_str_mv 10.1111/1475-6803.t01-1-00007
format Article
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source RePEc; Wiley Online Library Journals Frontfile Complete; Business Source Complete
subjects Acquisitions & mergers
Correlation analysis
Hypotheses
JEL classifications: G19
Securities trading
Securities trading volume
Stock exchanges
Studies
title Merger Announcements and Trading
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