Journal article
Earnings signals in fixed-price and Dutch auction self-tender offers
Journal of financial economics, Vol.49(2), pp.161-186
08/01/1998
DOI: 10.1016/S0304-405X(98)00021-X
Abstract
Studies by
Vermaelen (1981) and others indicate that the positive excess stock returns around self-tender offer announcements are the result of a signal of future earnings improvements.
Comment and Jarrell (1991), Lee, Mikkelson and Partch (1992) and
Persons (1994) argue that the signal in fixed-price self-tender offers should be stronger than the signal in Dutch auction self-tender offers. This study tests whether the earnings improvement following fixed-price self-tender offers is greater than that following Dutch auction self-tender offers. We find some evidence that earnings improve following both types of self-tender offers. However, we find no difference in earnings improvement between the two types of offers.
Details
- Title: Subtitle
- Earnings signals in fixed-price and Dutch auction self-tender offers
- Creators
- Erik Lie - William & MaryJohn J. McConnell - Purdue University West Lafayette
- Resource Type
- Journal article
- Publication Details
- Journal of financial economics, Vol.49(2), pp.161-186
- Publisher
- Elsevier B.V
- DOI
- 10.1016/S0304-405X(98)00021-X
- ISSN
- 0304-405X
- eISSN
- 1879-2774
- Language
- English
- Date published
- 08/01/1998
- Academic Unit
- Finance
- Record Identifier
- 9984380496802771
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