Investor inattention to all-cash acquisition announcements: a joint day-time analysis in the Spanish market
NAGIOS: RODERIC FUNCIONANDO

Investor inattention to all-cash acquisition announcements: a joint day-time analysis in the Spanish market

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Investor inattention to all-cash acquisition announcements: a joint day-time analysis in the Spanish market

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dc.contributor.author Farinós, José Emilio
dc.contributor.author Herrero, B.
dc.contributor.author Latorre, M.A.
dc.date.accessioned 2021-11-29T10:28:29Z
dc.date.available 2021-11-29T10:28:29Z
dc.date.issued 2021
dc.identifier.uri https://hdl.handle.net/10550/80832
dc.description.abstract Prior studies suggest that investors have limited attention, which determines the speed with which information is incorporated into share prices and, in turn, affects the efficiency of the markets. Unlike other corporate events, the information contained in an acquisition announcement is generally less standard and more complicated to process. Therefore, investor inattention is less likely around this event. In this study we test the existence of investor inattention for a sample of all-cash acquisition announcements of listed and unlisted target firms released by listed Spanish firms from 1998 to 2018. Cash acquisitions allow us to control for the strategic behavior of overvalued companies engaged in stock-financed acquisitions. We perform a joint analysis of day of the week and time of trade from both a univariate and a multivariate perspective, after controlling for several factors that are related to the market reaction to acquisition announcements. Consistent with the notion that investors are less attentive to Friday announcements, we find a significant lower market reaction to acquisition announcements released during market trading hours both in terms of price and trading volume.
dc.language.iso eng
dc.relation.ispartof Sustainability, 2021, vol. 13, num. 2
dc.rights.uri info:eu-repo/semantics/openAccess
dc.source Farinós, José Emilio Herrero, B. Latorre, M.A. 2021 Investor inattention to all-cash acquisition announcements: a joint day-time analysis in the Spanish market Sustainability 13 2
dc.subject Empreses Finances
dc.title Investor inattention to all-cash acquisition announcements: a joint day-time analysis in the Spanish market
dc.type info:eu-repo/semantics/article
dc.date.updated 2021-11-29T10:28:29Z
dc.identifier.doi https://doi.org/10.3390/su13020721
dc.identifier.idgrec 148776

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