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Rumor Mill and Merger Waves: Analysis of Aggregate Market Activity

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  • Igor Semenenko

Abstract

I examine timing of takeover rumors relative to merger waves. Peaks and troughs of rumor activity coincide with changes in the volume of takeovers. At aggregate market level, rumors should be viewed as coincident indicator of merger activity. Consequently, change in the number of rumors coupled with corresponding change in the merger volume can be interpreted as reversal in the direction of merger wave. Â JEL classification numbers: G14, G34

Suggested Citation

  • Igor Semenenko, 2019. "Rumor Mill and Merger Waves: Analysis of Aggregate Market Activity," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(2), pages 1-5.
    • Handle: RePEc:spt:apfiba:v:9:y:2019:i:2:f:9_2_5
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    References listed on IDEAS

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    More about this item

    Keywords

    rumors; merger waves; timing; market efficiency.;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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