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Stock Price Response (stock + price_response)
Selected AbstractsStock Price Response to Calls of Convertible Bonds: Still a Puzzle?FINANCIAL MANAGEMENT, Issue 2 2007Ivan E. Brick The liquidity hypothesis predicts negative abnormal returns around the conversion-forcing call announcements of convertible bonds, followed by a price recovery. We find the former but not the latter. The liquidity hypothesis also implies that the abnormal returns during the announcement and the post-announcement periods should be related to proxies for the stock s liquidity. Again, our findings do not support these implications of the liquidity hypothesis. We conclude that the reason for the negative abnormal returns around the announcement of a conversion-forcing call needs further examination. [source] Stock Market Valuation, Profitability and R&D Spending of the Firm: The Effect of Technology Mergers and AcquisitionsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2009Juha-Pekka Kallunki Abstract:, In this paper, we investigate whether a firm can enhance the effect of its R&D spending on its current market value and future profitability through technology-oriented M&As. On the basis of an analysis of 1,879 M&As, we find that when a technology firm acquires another technology firm, the magnitude of the stock price response to the R&D spending of an acquirer increases by 107% in the year of the M&A. In contrast, we find no such increase in the stock price response to the R&D spending of a non-technology acquirer. We also find that technology acquirers are more successful in converting their R&D spending into positive future profitability than non-technology acquirers. Our results are robust for different alternative specifications of our model and when various firm differences are controlled for. [source] The Disparate Nature of Targeted Repurchases: Evidence from Long-Run PerformanceJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 1-2 2007Saeyoung Chang Abstract:, We examine the announcement stock returns and long-run performance of 352 targeted repurchases from 1979 to 1998. For those repurchases of blocks that are non-control related we find a positive announcement stock price response and positive long-run stock performance indicating that these repurchases are timed to occur when the company's shares are undervalued and that the market underreacts to this signal. In contrast, for those repurchases of blocks that are control related we find a negative announcement stock price response and insignificant long-run stock performance indicating that these repurchases occur for a different reason. We conclude that control related repurchases are utilized solely to dismiss potential takeover bids and are not timed when the stock is undervalued. [source] INDUSTRY EFFECTS OF ANALYST STOCK REVISIONSTHE JOURNAL OF FINANCIAL RESEARCH, Issue 2 2006Aigbe Akhigbe Abstract We examine the industry valuation effects of analyst stock revisions and identify the variables that influence these effects. Our results show that industry rivals experience significant abnormal returns in response to revision announcements. Although the mean stock price response suggests contagion effects, there is also evidence of significant competitive effects. The valuation effects are influenced by the magnitude of the rated firm's announcement return, along with analyst-specific and industry-specific characteristics. However, the sensitivity of the valuation effects to these characteristics is conditioned on whether the industry effects are contagious or competitive. [source] | ||||||||||