Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions

By Yuanzhi Luo. 2005

631 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/6aad0fdae994344b24941d27e4e6611edeadeba2

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Citations in the corpus

Market-Based Corrective Actions (2010, background): “A growing empirical literature demonstrates that firm managers use information from the market price of their firms’ securities when making corporate investment decisions (see Luo 2005; Chen, Goldstein, and Jiang 2007; Bakke and Whited, forthcoming).”
High‐Frequency Trading and Market Performance (2020, neutral): “Chen, Goldstein, and Jiang (2007), Bakke and Whited (2010), Kau, Linck, and Rubin (2008), and Luo (2005) find empirical evidence consistent with the operation of this channel.”
The Bright Side of Financial Derivatives: Options Trading and Firm Innovation (2016, neutral): “For example, Luo (2005) finds that the positive correlation between announcement date return and the completion of mergers can be attributed to insiders’ learning from outsiders after controlling for common information.”
The source of information in prices and investment-price sensitivity (2017, neutral): “Luo (2005) , Bakke and Whited (2010) , and Edmans et al. (2012) also provide evidence of managerial learning from prices.”
Trading Frenzies and Their Impact on Real Investment (2013, background): “Empirical evidence for this link is provided by Luo (2005) and Chen, Goldstein, and Jiang (2007).”
Which Firms Follow the Market? An Analysis of Corporate Investment Decisions (2010, neutral): “Our results concerning price informativeness, however, confirm the previous results in Luo (2005) and Goldstein, Chen, and Jiang (2007) that investment decisions are guided by private information embedded in the stock price.”
Cross-Listing, Investment Sensitivity to Stock Price, and the Learning Hypothesis (2012, neutral): “Luo (2005) studies empirically the case of merger announcements and shows that managers use the information contained in the stock price reaction to these announcements to cancel or consummate the deal.”
Information, Misallocation, and Aggregate Productivity (2016, background): “Chen et al. (2007), Luo (2005), and Bakke and Whited (2010) are examples of studies that ﬁnd evidence of managers learning from markets while making investment decisions.”
Acquisitions and CEO Power: Evidence from French Networks (2009, background): “Acquiring firms usually take into account investors' behavior (Luo, 2005) and particularly , CEOs listen to the market (Kau et al., 2008).”
The Challenge of Integration: A Review of the M&A Integration Literature (2017, background): “The reason for this discrepancy is probably that the complexity of the integration process does not lend itself easily to large-scale, cross-case study designs, which are the cornerstone of the finance approach to M&As (e.g. Billett et al. 2004; Luo 2005).”
The Importance of the Internal Information Environment for Tax Avoidance (2015, background): “Luo (2005)) suggests that the insiders to the firm sometimes learn from information produced by outsiders (e.”