Contributions

  • Pulvino, Todd - Contributor
  • Stafford, Erik - Contributor
  • Harvard Business School. Division of Research - Contributor

Publication

2002 - Division of Research, Harvard Business School, Boston], Massachusetts

Language

English

Word Count

0 words, Guess

Page Count

0 pages

Identifiers

Description

"This paper examines the trading behavior of professional investors around 2,130 mergers announced between 1994 and 2000. We find considerable support for the existence of price pressure around mergers caused by uniformed shifts in excess demand, but that these effects are fairly short-lived, consistent with the notion that short0run demand curves for stocks are not perfectly elastic. We estimate that roughly one half of the negative announcement period stock price reaction for acquirers in stock-financed mergers reflects downward price pressure caused by merger arbitrage short selling."

Subjects

Series Statement

  • Working paper / Division of Research, Harvard Business School -- 03-029

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