A Phenomenon of the Market: Stock Market-Based Mergers and Acquisitions
New research explains who acquires whom, whether payment is made in cash or stock, what valuation consequences arise from mergers, and why there are merger waves.
Content: Article | Authors: Andrei Shleifer, Robert W. Vishny | Source: Capital Ideas | Subject: Finance
The Pack Mentality: A Behavioral Finance View of Stock Price Comovement
By looking carefully at data on individual stock prices, it is easy to find many examples of “comovement” – groups of stocks whose prices tend to move together. For instance, prices of stocks in the same industry tend to move together, as do the prices of small-cap stocks, value stocks, and closed-end funds.
Content: Article | Authors: Andrei Shleifer, Jeffrey Wurgler, Nicholas Barberis | Source: Capital Ideas | Subjects: Finance, Industry Specific | Industry: Investment Banking