Uncertainty Triggers Overreaction: Evidence from Corporate Takeovers
(2016)
Journal Article
Black, E., Guo, M., Hu, N., & Vagenas-Nanos, E. (2017). Uncertainty Triggers Overreaction: Evidence from Corporate Takeovers. European Journal of Finance, 23(14), 1362-1389. https://doi.org/10.1080/1351847x.2016.1202296
Behavioural finance models suggest that under uncertainty, investors overweight their private information and overreact to it. We test this theoretical prediction in an M&A framework. We find that under high information uncertainty, when investors ar... Read More about Uncertainty Triggers Overreaction: Evidence from Corporate Takeovers.