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How to Predict the Market's Reaction When You Announce an Acquisition
Author(s) -
Jansen Ivo Ph.,
Stuart Nathan V.
Publication year - 2013
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.21922
Subject(s) - business , stock market , accounting , stock (firearms) , financial economics , monetary economics , finance , economics , engineering , mechanical engineering , paleontology , horse , biology
Successful M&A activity depends on carefully integrating the target firm into the acquirer. But it is also im‐portant that CEOs, CFOs, and top financial officers be prepared for the stock market's immediate reaction to an M&A announcement. This reaction is not always positive. But what factors actually determine the stock market's reaction? The authors of this article reveal what they are‐because executives who know what to expect will be better prepared to answer questions from the media, analysts, and investors. © 2014 Wiley Periodicals, Inc.