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Mergers and Acquisitions pp 96–117Cite as

Palgrave Macmillan

Price Volatility in Stocks Subject to Tender Offers

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Abstract

Enduring interest in the market for corporate control stems from its importance in ensuring that assets are managed as efficiently as possible to generate output from the economy’s stock of productive resources. A plethora of empirical studies examining the efficiency of this market in many countries has provided evidence that firms subject to takeover bids experience substantial revaluation. The emphasis of this research has been on the behavior of the level of prices around the announcement of takeover offers, with very few studies examining the price volatility of target companies, and fewer still investigating what happens to trading volume around takeover announcements.

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Authors
  1. Elaine Hutson
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Editor information

Editors and Affiliations

  1. School of Business and Economics, State University of New York (Plattsburgh), USA

    Greg N. Gregoriou (Professor of Finance) (Professor of Finance)

  2. State University of New York (Plattsburgh), USA

    Karyn L. Neuhauser (Assistant Professor) (Assistant Professor)

Copyright information

© 2007 Elaine Hutson

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Cite this chapter

Hutson, E. (2007). Price Volatility in Stocks Subject to Tender Offers. In: Gregoriou, G.N., Neuhauser, K.L. (eds) Mergers and Acquisitions. Finance and Capital Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230589681_7

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