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(1 - 14 of 14)
- Title
- Over- and underreactions in American and global stock market indexes.
- Creator
- Schnusenberg, Oliver, Florida Atlantic University, Madura, Jeff
- Abstract/Description
-
The primary objectives of this study are to investigate the stock market over- or underreaction of various U.S. stock market indexes, the over- or underreaction of a global stock market index, and the over- or underreaction of various-countries' national stock markets relative to a "global" over- or underreaction. The secondary objectives are to investigate the reasons for the U.S. over- or underreaction and for the relative under- or overreaction of individual countries. For six U.S. stock...
Show moreThe primary objectives of this study are to investigate the stock market over- or underreaction of various U.S. stock market indexes, the over- or underreaction of a global stock market index, and the over- or underreaction of various-countries' national stock markets relative to a "global" over- or underreaction. The secondary objectives are to investigate the reasons for the U.S. over- or underreaction and for the relative under- or overreaction of individual countries. For six U.S. stock market indexes, we find a one-day stock market underreaction to highly positive and negative news releases. Over a sixty-day interval, we find strong evidence of a stock market underreaction (overreaction) to positive (negative) news. Cross-sectionally, we find strong evidence that investors are more optimistic the larger the recent runup in the stock market index is. Also, investors are more optimistic in periods of high economic growth, whether they are faced with positive or negative information. Focusing on the MSCI World Indexes denominated in both local currencies and U.S. dollars, we find that investors underreact to both positive and negative news in both the short- and the long-run. The last objective of this study was to investigate the relative under- or overreaction of nineteen individual countries in response to a global under- or overreaction. We find that several countries exhibit a one-day underreaction relative to the MSCI World Index on the day following a very large positive or negative movement in the MSCI World Index. Over a sixty-day interval, several countries overreact relative to the MSCI World Index when positive information is released on a global basis but underreact to the MSCI World Index when negative information is released on a global basis. Cross-sectionally, results reveal evidence consistent with a hypothesis where investors are more optimistic with respect to both positive and negative news when there is a speculative bubble in the foreign stock market. We also find that investors in countries with high economic growth rates tend to be more optimistic than investors in countries with low economic growth rates when faced with positive and negative global news arrivals.
Show less - Date Issued
- 1999
- PURL
- http://purl.flvc.org/fcla/dt/12606
- Subject Headings
- Stock Exchanges, Stock Price Indexes
- Format
- Document (PDF)
- Title
- Speculative bubbles and tests of the contagion mechanism in financial markets.
- Creator
- Porras Gonzalez, Eva Raquel., Florida Atlantic University, Wiley, Marilyn
- Abstract/Description
-
This dissertation extends previous research on bubbles by investigating whether changes in the financial asset prices of the S&P500 reflect changes in fundamentals. We propose that if this is not the case the volatility is due to a bubble. Hence, this is the general hypothesis from which several testable hypotheses are developed. A key issue in bubble research is the definition of fundamentals. In this work we assume that, in the long-run, operating revenues are the only source from which any...
Show moreThis dissertation extends previous research on bubbles by investigating whether changes in the financial asset prices of the S&P500 reflect changes in fundamentals. We propose that if this is not the case the volatility is due to a bubble. Hence, this is the general hypothesis from which several testable hypotheses are developed. A key issue in bubble research is the definition of fundamentals. In this work we assume that, in the long-run, operating revenues are the only source from which any payments can be made, including dividend payments. Therefore, if expectations are formulated correctly, on average, there has to be a relationship between changes in prices and changes in corporate revenues. Thus, we use different accounting variables as proxies for fundamentals. In addition, since the literature points to contagion of opinion as one of the causes for the creation of bubbles, we also examine the contemporaneous relationship between prices and several proxies for herding behavior. OLS, panel data analysis, and quantile regression are used to analyze the contemporaneous relationship between prices and fundamentals or contagion proxies; while cointegration (reconciled to be used with panel data) and the Bonferroni inequality are used to investigate the long-run equilibrium between prices and fundamentals. The results indicate that, overall, company earnings are not explanatory of prices. These findings hold both in the short-run and in the long-run equilibrium scenarios. In addition, we find that investors do not reward an increase of the debt in the capital structure of corporations. In reference to our contagion variables, changes in money flow, volume, and volatility are found explanatory of changes in prices. Nevertheless, the effect of these variables is not homogeneous across price changes. Specifically, Money Flow is significant across all quantiles except for the 30% lowest price changes, Volume is explanatory of the 35% highest price changes, while volatility is explanatory across all the distribution of price changes. An interesting observation is that the three independent variables become increasingly explanatory as we move up to higher quantiles. Taken together our findings are supportive of the bubble and contagion hypotheses.
Show less - Date Issued
- 2000
- PURL
- http://purl.flvc.org/fcla/dt/12643
- Subject Headings
- Speculation, Cointegration, Stocks--Prices
- Format
- Document (PDF)
- Title
- Stock prices and consumption: A new variable in the consumption function?.
- Creator
- Kinney, Timothy P., Florida Atlantic University, Yuhn, Ky-hyang
- Abstract/Description
-
This thesis examines the significance of the real interest rate and stock prices as explanatory variables in the aggregate consumption function. This study applies the methodologies of OLS regression analysis and tests of cointegration to examine the relationship between stock prices and consumption. The empirical results suggest that stock prices are a significant factor in the modified aggregate consumption function. Consumers, perceiving stock prices to be an indicator of their wealth, are...
Show moreThis thesis examines the significance of the real interest rate and stock prices as explanatory variables in the aggregate consumption function. This study applies the methodologies of OLS regression analysis and tests of cointegration to examine the relationship between stock prices and consumption. The empirical results suggest that stock prices are a significant factor in the modified aggregate consumption function. Consumers, perceiving stock prices to be an indicator of their wealth, are making more expenditures on durable goods as they perceive increases in stock values to be permanent. Finally, the results of the tests for cointegration suggest that there is no long-run equilibrium relationship between stock prices and consumption.
Show less - Date Issued
- 1997
- PURL
- http://purl.flvc.org/fcla/dt/15504
- Subject Headings
- Consumption (Economics), Stocks--Prices
- Format
- Document (PDF)
- Title
- PAYOUT POLICY AND STOCK PRICE VOLATILITY: INVESTIGATING THE EQUITY DURATION HYPOTHESIS AND THE REPURCHASES SUBSTITUTION HYPOTHESIS.
- Creator
- Haberstumpf, Craig, Pennathur, Anita, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
-
In Essay 1, I investigate the Equity Duration Hypothesis, which adapts Macaulay’s fixed income analysis to equity securities, finding evidence that dividend payers are less volatile than nonpayers and that dividend yield is negatively associated with volatility for the all-firms sample. Within the payer sample, however, I find unexpected evidence of a positive association when yield includes all dividends but a conflicting negative association when yield includes only quarterly dividends....
Show moreIn Essay 1, I investigate the Equity Duration Hypothesis, which adapts Macaulay’s fixed income analysis to equity securities, finding evidence that dividend payers are less volatile than nonpayers and that dividend yield is negatively associated with volatility for the all-firms sample. Within the payer sample, however, I find unexpected evidence of a positive association when yield includes all dividends but a conflicting negative association when yield includes only quarterly dividends. This ambiguous evidence is corroborated by a one-year portfolio approach, as a previously strengthening negative relationship has transitioned to a strengthening positive one, with results demonstrably trending against the EDH in recent decades. I further find that high-yield stocks that have experienced negative price shocks are highly volatile and strong support for the EDH using firm-level earnings and cash flows as a proxy for dividends, allowing extension of the analysis to nonpaying firms. Unfortunately, I find abundant evidence supporting the assertions of many researchers who suggest that ED is not a unique asset pricing factor, but rather represents a composite of a firm’s characteristics and is redundant with other factors known to be associated with volatility.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014292
- Subject Headings
- Dividends, Stocks--Prices, Bonds
- Format
- Document (PDF)
- Title
- The impact of industry-specific variables on the performance of initial public offerings.
- Creator
- Johnston, Jarrod G., Florida Atlantic University, Madura, Jeff
- Abstract/Description
-
This dissertation examines the effect of variables specific to different industries on initial public offerings (IPOs). It has been widely accepted that IPOs perform well in the immediate aftermarket and perform poorly in the subsequent months. The uncertainty surrounding IPOs has been a frequently cited reason for the initial underpricing. The size of the offering, underwriter prestige, the number of uses of gross proceeds, and the level of inside ownership are a few of the variables that...
Show moreThis dissertation examines the effect of variables specific to different industries on initial public offerings (IPOs). It has been widely accepted that IPOs perform well in the immediate aftermarket and perform poorly in the subsequent months. The uncertainty surrounding IPOs has been a frequently cited reason for the initial underpricing. The size of the offering, underwriter prestige, the number of uses of gross proceeds, and the level of inside ownership are a few of the variables that have been found to measure the uncertainty of IPOs across industries. The uncertainty of IPOs in different industries may also be affected by variables that are unique to that industry. The level of interest rates and the amount of regulation may affect the performance of existing financial service firms. The uncertainty of IPOs in the financial services industry may also be affected by these variables. This study finds that some financial service firm IPOs are affected by the level of interest rates. Some regulatory changes increase the uncertainty, and therefore the initial returns, of IPOs of financial service firms. The type of ownership structure affects the management of a firm due to differing agency costs. A mutual holding company (MHC) is a mutual company that issues a minority stake to the public. The MHC structure has been common among savings banks and is growing in popularity in the life insurance industry. The lack of takeover possibilities and stockholder control diminishes the risk taking behavior of MHCs in the thrift industry. Savings banks that choose the MHC structure experience lower initial returns without significant long run differences than savings banks that choose to convert to a completely stockholder owned bank. The operating characteristics may also affect the uncertainty of the firm. The internet allows firms to enter into an industry while having completely different operating structure than many of the other competitors. This study finds that firms that have an internet focus have higher initial returns than a matching set of IPOs. The changing environment, due to technology and low barriers to entry, increases the uncertainty of internet firms.
Show less - Date Issued
- 2000
- PURL
- http://purl.flvc.org/fcla/dt/12644
- Subject Headings
- Going public (Securities), Stocks--Prices
- Format
- Document (PDF)
- Title
- Stock prices and the money supply: Testing for informational efficiency.
- Creator
- Hernandez, Ulises Angel., Florida Atlantic University, Yuhn, Ky-hyang
- Abstract/Description
-
For a stock market to allocate funds efficiently, stock prices should immediately incorporate all of the information available. If we find that there is a lag between changes in variables that might affect the price of stocks, and the reflection of that change in its price, the market for stocks will be inefficient. This thesis tests the stock markets in six of the largest developed economies for informational efficiency. It tests the stock markets in Canada, France, Germany, Japan, The...
Show moreFor a stock market to allocate funds efficiently, stock prices should immediately incorporate all of the information available. If we find that there is a lag between changes in variables that might affect the price of stocks, and the reflection of that change in its price, the market for stocks will be inefficient. This thesis tests the stock markets in six of the largest developed economies for informational efficiency. It tests the stock markets in Canada, France, Germany, Japan, The United Kingdom, and The United States, for the existence of a causal relationship between changes in the money supply and changes in stock prices, and applies the Granger-causality test to perform it. A stock market is informationally inefficient if a causal relationship between changes in the money supply and changes in stock prices is found. In this case, money supply changes could be used to predict movements in the prices of stocks, create profitable trading rules, and help us earn above-normal returns, thus casting doubts on the ability of the stock market to allocate funds efficiently.
Show less - Date Issued
- 1999
- PURL
- http://purl.flvc.org/fcla/dt/15627
- Subject Headings
- Stocks--Prices, Money supply, Stock exchanges
- Format
- Document (PDF)
- Title
- Duration and the prices of common stocks.
- Creator
- Konnan, Yehuda A., Florida Atlantic University, Stronge, William B., College of Business, Department of Economics
- Abstract/Description
-
In finance, the term 'duration' means the effective length of a financial obligation which is discharged in installments. This concept has a number of applications in finance like calculating the change in the price of bonds due to the change in interest rates, immunizing the value of bonds, etc. Common stocks are also financial obligations and are considered to have durations. For bonds and similar strong contractual obligations, duration and its applications are clear cut and are used...
Show moreIn finance, the term 'duration' means the effective length of a financial obligation which is discharged in installments. This concept has a number of applications in finance like calculating the change in the price of bonds due to the change in interest rates, immunizing the value of bonds, etc. Common stocks are also financial obligations and are considered to have durations. For bonds and similar strong contractual obligations, duration and its applications are clear cut and are used widely. For common stocks duration evaluation is difficult and its practical applications hardly exist. Moreover, there are no publications of numerical results where duration was applied to common stocks. These facts make it doubtful whether duration can be applied to common stocks. The results of the empirical research here, with numerical results, make it doubtful that duration can be applied to common stocks or to explain price fluctuations of common stocks.
Show less - Date Issued
- 1997
- PURL
- http://purl.flvc.org/fcla/dt/15368
- Subject Headings
- Investments--Mathematics, Stocks--Prices, Interest rates
- Format
- Document (PDF)
- Title
- Pricing behavior of exchange traded funds.
- Creator
- Richie, Nivine F., Florida Atlantic University, Madura, Jeff
- Abstract/Description
-
This dissertation examines the pricing behavior of exchange traded funds (ETFs) in three essays. (1) The Overreaction of International ETFs, (2) Fragmentation of Night Markets, and (3) The Impact of the Creation of the QQQ on the Underlying Securities. The overreaction study examines the role of information in global overreaction. Univariate analysis reveals that overreaction associated with informed events is less pronounced than with uninformed events following extreme price decreases....
Show moreThis dissertation examines the pricing behavior of exchange traded funds (ETFs) in three essays. (1) The Overreaction of International ETFs, (2) Fragmentation of Night Markets, and (3) The Impact of the Creation of the QQQ on the Underlying Securities. The overreaction study examines the role of information in global overreaction. Univariate analysis reveals that overreaction associated with informed events is less pronounced than with uninformed events following extreme price decreases. Further, positive firm-specific announcements are met with investor overreaction while negative firm-specific announcements are not. Finally, significant reversals of winners during bull markets relative to bear markets support the hypothesis that bull markets contribute to investor overconfidence and overreaction. The fragmentation study examines the cost of market fragmentation across day and night trading sessions. Using a sample of intraday transaction data for three ETFs, I show that night markets do not impound information available in net order flow to the same degree as day markets. Bid-ask spreads are wider at night and these costs are due to higher order processing costs, market maker rents and higher inventory holding costs. Furthermore, market concentration costs at night are associated with significantly higher spreads. The QQQ creation study investigates whether the creation of tradable baskets of securities affects the pricing efficiency and risk of the underlying securities. The results show that extreme price movements in the post-QQQ period are met with less pronounced corrections than in the pre-QQQ period, and that this pricing pattern does not hold true for the control sample. A decomposition of spreads finds that quoted spreads widen and effective spreads tighten in the post-QQQ period. Furthermore, though more heavily weighted components of the QQQ experience tighter spreads, this benefit is less pronounced in the post-QQQ period implying relative benefits to the less heavily weighted components. Cross-sectional analysis reveals that liquidity is directly related to pricing efficiency, but this relationship lessens in the post-QQQ period. The results also show that systematic risk for the underlying securities declines while total risk rises, though the control sample experiences a similar rise in total risk.
Show less - Date Issued
- 2004
- PURL
- http://purl.flvc.org/fau/fd/FADT12071
- Subject Headings
- Exchange Traded Funds, Securities, Foreign exchange market, Stocks--Prices
- Format
- Document (PDF)
- Title
- Stock Market Efficiency An International Comparison.
- Creator
- Kirk, Michael C., Yuhn, Ky-hyang, Florida Atlantic University
- Abstract/Description
-
Major financial newspapers and financial news programs in the United States, such as the Wall Street Journal and the Financial News Network, often mention macroeconomic data in attempting to predict a potential adjustment in the level of stock market prices. The presentation ofthis data is particularly prevalent when the level of stock market prices is in record territory. However, many believe that there exists no relationship, correlation or causal relationship between the level of stock...
Show moreMajor financial newspapers and financial news programs in the United States, such as the Wall Street Journal and the Financial News Network, often mention macroeconomic data in attempting to predict a potential adjustment in the level of stock market prices. The presentation ofthis data is particularly prevalent when the level of stock market prices is in record territory. However, many believe that there exists no relationship, correlation or causal relationship between the level of stock market prices and macroeconomic indicators, especially in technologically advanced nations. The purpose ofthis paper is to test the efficiency of three international stock markets. If a stock market is efficient, all current information is instantaneously reflected in its price level. Since stock prices in an efficient market reflect all of the available information instantaneously, investors cannot profit by analyzing macroeconomic indicators. Thus, the implication is that there are no immediate profit-making opportunities in efficient markets and there are profit-making opportunities in less efficient markets. If the stock market ofthe United States is proven to be efficient, then the news media is incorrect in its presentation of macroeconomic data in order to predict an adjustment in the stock market.
Show less - Date Issued
- 1997
- PURL
- http://purl.flvc.org/fau/fd/FA00000308
- Subject Headings
- Stocks--Prices, Efficient market theory, International finance
- Format
- Document (PDF)
- Title
- CEO SOCIAL CAPITAL AND STOCK PRICE INFORMATIVENESS: US AND INTERNATIONAL PERSPECTIVES.
- Creator
- Malinin, Artem, Garcia-Feijoo, Luis, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
-
In Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital...
Show moreIn Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital and informativeness is driven by more diverse networks, as measured by gender, nationality, education, or professional diversity. Overall, results suggest that private information existing in networks may result in markets that are more informationally efficient. In Essay 2, I show that CEOs’ social capital has a positive impact on stock price informativeness in an international sample. Different robustness and endogeneity tests confirm those results. Moreover, I find that factors present at the country level can mitigate or reinforce social capital’s impact on informativeness. I consider characteristics not observable within one country that can influence such relation around the world including legal, cultural, and developmental. I uncover that for more developed countries and those with a higher quality of institutions a positive impact of social connectedness is more pronounced. In addition, I show the importance of CEOs’ connections characteristics for their impact on stock price informativeness. I find that if CEOs’ connections come from developed countries or countries that have better formal and informal institutions which affect information transparency, CEOs’ social capital becomes more important for informativeness.
Show less - Date Issued
- 2022
- PURL
- http://purl.flvc.org/fau/fd/FA00013973
- Subject Headings
- Chief executive officers, Social capital (Sociology), Stocks--Prices
- Format
- Document (PDF)
- Title
- An intelligent neural network forecaster to predict the Standard & Poor 500's index.
- Creator
- Shah, Sulay Bipin., Florida Atlantic University, Pandya, Abhijit S., College of Engineering and Computer Science, Department of Computer and Electrical Engineering and Computer Science
- Abstract/Description
-
In this thesis we present an intelligent forecaster based on neural network technology to capture the future path of the market indicator. This thesis is about the development of a new methodology in financial forecasting. An effort is made to develop a neural network forecaster using the financial indicators as the input variables. A complex recurrent neural network is used to capture the behavior of the nonlinear characteristics of the S&P 500. The main outcome of this research is, a...
Show moreIn this thesis we present an intelligent forecaster based on neural network technology to capture the future path of the market indicator. This thesis is about the development of a new methodology in financial forecasting. An effort is made to develop a neural network forecaster using the financial indicators as the input variables. A complex recurrent neural network is used to capture the behavior of the nonlinear characteristics of the S&P 500. The main outcome of this research is, a systematic way of constructing a forecaster for nonlinear and non-stationary data series of S&P 500 that leads to very good out-of-sample prediction. The results of the training and testing of the network are presented along with conclusion. The tool used for the validation of this research is "Brainmaker". This thesis also contains a brief survey of available tools for financial forecasting.
Show less - Date Issued
- 1999
- PURL
- http://purl.flvc.org/fcla/dt/15741
- Subject Headings
- Neural networks (Computer science), Stock price forecasting, Time-series analysis
- Format
- Document (PDF)
- Title
- A new methodology to predict certain characteristics of stock market using time-series phenomena.
- Creator
- Shah, Trupti U., Florida Atlantic University, Pandya, Abhijit S., College of Engineering and Computer Science, Department of Computer and Electrical Engineering and Computer Science
- Abstract/Description
-
The goal of time series forecasting is to identify the underlying pattern and use these patterns to predict the future path of the series. To capture the future path of a dynamic stock market variable is one of the toughest challenges. This thesis is about the development of a new methodology in financial forecasting. An effort is made to develop a neural network forecaster using time-series phenomena. The main outcome of this new approach for financial forecasting is a systematic way of...
Show moreThe goal of time series forecasting is to identify the underlying pattern and use these patterns to predict the future path of the series. To capture the future path of a dynamic stock market variable is one of the toughest challenges. This thesis is about the development of a new methodology in financial forecasting. An effort is made to develop a neural network forecaster using time-series phenomena. The main outcome of this new approach for financial forecasting is a systematic way of constructing a Neural Network Forecaster for nonlinear and non-stationary time-series data that leads to very good out-of-sample prediction. The tool used for the validation of this research is "Brainmaker". This thesis also contains a small survey of available tools used for financial forecasting.
Show less - Date Issued
- 1999
- PURL
- http://purl.flvc.org/fcla/dt/15677
- Subject Headings
- Time-series analysis, Neural networks (Computer science), Stock price forecasting
- Format
- Document (PDF)
- Title
- Two essays on newly public firms.
- Creator
- Wiggenhorn, Joan, Florida Atlantic University, Madura, Jeff
- Abstract/Description
-
This dissertation examines the stock price behavior of newly public firms following two separate events, acquisition announcements and a large single day price change. For the first essay on overreaction, the changes in both liquidity and information are considered in studying the stock price reaction to a trigger of +/-15%. Over 2,600 events are evaluated for these newly public firms from 1992--2001 with events classified as occurring during either the quiet, lockup or post lockup period....
Show moreThis dissertation examines the stock price behavior of newly public firms following two separate events, acquisition announcements and a large single day price change. For the first essay on overreaction, the changes in both liquidity and information are considered in studying the stock price reaction to a trigger of +/-15%. Over 2,600 events are evaluated for these newly public firms from 1992--2001 with events classified as occurring during either the quiet, lockup or post lockup period. For positive trigger events during the quiet period, a large one-day price change results in a significant underreaction. Positive triggers during the lockup period result in no significant abnormal returns, while a statistically significant overreaction occurs during the post lockup period. For negative triggers, while there are no significant abnormal returns for the reactions in any period, there is nevertheless a statistically significant difference between the reactions during the quiet and the post lockup periods. In addition, the degree of market reaction is found to be significantly different for events with information versus events without information. The second essay examines the stock price reaction when newly public firms make acquisition announcements. The belief is that these firms may experience a more positive reaction due to the firms' smaller size, need for immediate expansion, and increased corporate governance. On the other hand, these firms may lack the expertise to successfully integrate the acquisition targets. The results show that these newly public firms experience significant announcement returns of 2.63%. In general, higher announcement returns are found the smaller the acquirer, the smaller the relative size of the acquisition, and if the target is privately held. While the presence of venture capitalists and top tier underwriters result in lower announcement returns, returns are higher if the acquisition advisor is the same as the original underwriter. The buy and hold abnormal returns calculated using a matched sample are not significant. However, acquisitions with economies of scale for the motive have returns of 15% following one year, while those for economies of scope have -15% and the difference is significant.
Show less - Date Issued
- 2003
- PURL
- http://purl.flvc.org/fau/fd/FADT12063
- Subject Headings
- Stocks--Prices, Going Public (Securities), Consolidation and Merger of Corporations, Corporations--Finance
- Format
- Document (PDF)
- Title
- Market reaction to the acquisitions of thrift institutions and banks since the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
- Creator
- Whyte, Ann Marie., Florida Atlantic University, Madura, Jeff
- Abstract/Description
-
This study empirically investigates the market reaction to acquisitions of thrift institutions and banks occurring since the passage of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The study tests several hypotheses related to characteristics of the acquiring firm, the target firm, and the acquisition. The overall market reaction to the acquisitions is negative. The study also reveals that there are cross-sectional factors which influence the share price...
Show moreThis study empirically investigates the market reaction to acquisitions of thrift institutions and banks occurring since the passage of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The study tests several hypotheses related to characteristics of the acquiring firm, the target firm, and the acquisition. The overall market reaction to the acquisitions is negative. The study also reveals that there are cross-sectional factors which influence the share price response. The results of the empirical tests are relevant to depository institutions contemplating acquisitions, to the Resolution Trust Corporation, and to taxpayers.
Show less - Date Issued
- 1991
- PURL
- http://purl.flvc.org/fcla/dt/12277
- Subject Headings
- Financial Institutions--Valuation, Stocks--Prices, Financial Institutions--Law and Legislation--United States, Banking Law--United States
- Format
- Document (PDF)
