The (Missing) Relation Between Announcement Returns and Value Creation

Previously circulated as “Do Acquirer Announcement Returns Reflect Value Creation?” We are thankful for the helpful comments from Hank Bessembinder, Alon Brav, Elijah Broadbent, Alex Chinco, Nickolay Gantchev, John Graham, Douglas Hanna, Jarrad Harford, Cam Harvey, David Hirshleifer, Gerard Hoberg, Mohammad Irani, Pab Jotikasthira, Adam Kolasinski, Mattia Landoni, Christian Leuz, James Linck, Antonio Macias, Vojislav Maksimovic, Ulrike Malmendier, Darius Miller, Micah Officer, Rik Sen, Wayne Shaw, Jared Stanfield, Mike Stegemoller, René Stulz, Rex Thompson, Kumar Venkataraman, Mike Weisbach, James Weston, Mike Wittry, and Feng Zhang, as well as seminar participants at Baylor University, Baruch College, the Chinese University of Hong Kong, the Hong Kong University of Science and Technology, Hong Kong University, Southern Methodist University, The Ohio State University, the University of Buffalo, Texas Tech University, the University of Washington, the Korea University Business School, and the Korea Advanced Institute of Science & Technology. We also thank participants at the American Finance Association Conference, the Asian Bureau of Finance and Economic Research (ABFER) Conference, the Midwest Finance Association Conference, and the Financial Research Network (FIRN) seminar series. Bhattacharya acknowledges the generous funding by Hong Kong GRF Grant No. 16500118. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• October 22, 2020
• July 25, 2022
• April 9, 2024